2025-01728 SUPPLEMENTAL MATERIAL An Ordinance Amending Various Provisions of Title 17 (Planning & Development Code) Relating to Cannabis Land Uses (M25-003) [In Lieu of Pass for Publication Ordinance to be Published in its Entirety] [Published 11/07/2025] [Updated 11/14/2025 @ 11:11 AM] — Sacramento City Council, November 18, 2025 (part 1 of 3)

CITY COUNCIL
Kevin McCarty, Mayor
Lisa Kaplan, District 1
Roger Dickinson, District 2
Karina Talamantes, Vice Mayor, District 3
Phil Pluckebaum, District 4
Caity Maple, District 5
Eric Guerra, Mayor Pro Tem, District 6
Rick Jennings, II, District 7
Mai Vang, District 8

CHARTER OFFICERS
Mindy Cuppy, City Clerk
Gustavo Limón Martinez, Interim City Attorney
Farishta Ahrary, City Auditor
Leyne Milstein, Interim City Manager
John Colville, City Treasurer

City Council
Financing Authority
Housing Authority
Public Financing Authority
Redevelopment Agency Successor Agency
City Hall Complex
915 I Street, Sacramento, CA 95814
Published by the Office of the City Clerk
(916) 808-7200

SUPPLEMENTAL MATERIAL

Description: Attached is supplemental material received after publishing the agenda. The attached staff report replaces the original staff report in its entirety.

For the Meeting of: Tuesday, November 18, 2025 at 2:00 p.m.

Agenda Item: Public Hearing Item 36

36. An Ordinance Amending Various Provisions of Title 17 (Planning & Development Code) Relating to Cannabis Land Uses (M25-003) [In Lieu of Pass for Publication Ordinance to be Published in its Entirety] [Published 11/07/2025]
File ID: 2025-01728
Location: Citywide
Recommendation: Conduct a public hearing and upon conclusion, pass a Motion: 1) determining the ordinance exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3); and 2) adopt an Ordinance amending various provisions of Title 17 of the Sacramento City Code relating to cannabis land uses.

Contact: Kirk Skierski, Senior Planner, (916) 808-7933, [email protected]; Kevin Colin, Zoning Administrator, (916) 808-5260, [email protected]; Community Development Department

City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01728 11/18/2025
An Ordinance Amending Various Provisions of Title 17 (Planning & Development Code) Relating to Cannabis Land Uses (M25-003) [In Lieu of Pass for Publication Ordinance to be Published in its Entirety] [Published 11/07/2025]
File ID: 2025-01728
Location: Citywide
Recommendation: Conduct a public hearing and upon conclusion, pass a Motion: 1) determining the ordinance exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3); and 2) adopt an Ordinance amending various provisions of Title 17 of the Sacramento City Code relating to cannabis land uses.

Contact: Kirk Skierski, Senior Planner, (916) 808-7933, [email protected]; Kevin Colin, Zoning Administrator, (916) 808-5260, [email protected]; Community Development Department
Presenter: Kevin Colin, Zoning Administrator, (916) 808-5260, [email protected], Community Development Department
Attachments:
1-Description/Analysis
2-Cannabis Amendments Ordinance (Redline)
3-Cannabis Amendments Ordinance (Clean)
4-City Council September 16, 2025 Staff Report
5-Sensitive Uses: Dispensaries
6-Dispensaries: Review Authority
7-Cannabis Dispensaries: 1,000 School Buffer
8-Cannabis Dispensaries: State Sensitive Uses
9-Staff Presentation
Description/Analysis
Issue Detail: On September 16, 2025, the City Council reviewed, commented, and provided direction on changes to existing zoning regulations for cannabis land uses (Attachment 4). In response, staff has prepared an ordinance responsive to the direction received (Attachments 2 and

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File ID: 2025-01728 11/18/2025
3). This report summarizes the ordinance amendments according to the following four categories:

I. Sensitive Uses: These amendments provide buffer distances from cannabis uses and specified land uses defined as sensitive uses.

II. Permit Type: These amendments provide the permitting process for cannabis uses.

III. Cannabis Consumption Lounges: These amendments provide regulations for establishing a cannabis consumption lounge within an existing storefront dispensary.

IV. Other Amendments: These amendments include other substantive ordinance provisions relating to cannabis uses.

Within each category, the ordinance strives to carry out direction aligning with that voiced by a majority of councilmembers. Where a minority opinion was received, the discussion below identifies it and provides additional information for consideration.

I. Sensitive Uses:

The proposed ordinance includes the following sensitive use separation requirements for cannabis uses:

1. All Cannabis Land Uses: 600-foot buffer from K-12 schools.

2. Cannabis Dispensaries: 600-foot buffer from the following sensitive uses:
· Neighborhood, community, and regional parks;
· Community centers;
· Libraries;
· Museums;
· Substance abuse rehabilitation centers; and
· Youth-oriented facilities.

Allow cannabis dispensaries to propose locations within 600 feet of a sensitive use (except for schools) through a Conditional Use Permit reviewed by the Planning and Design Commission.

Attachment 5 illustrates the sensitive use locations and buffers; Attachment 6 illustrates the review authority based on the 600-foot buffer. Cannabis consumption lounges may be authorized at any storefront cannabis dispensary with a conditional use permit, regardless of distance to sensitive uses.

Alternative sensitive use standards voiced by a minority of councilmembers and not included within

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File ID: 2025-01728 11/18/2025
the ordinance are summarized below.

1. 1,000 feet from Schools:Increase buffer from 600 feet to 1,000 feet.

This standard would result in a 2,835-acre reduction (~28%) in where cannabis uses could locate citywide when compared to the proposed ordinance.

Attachment 5 7 identifies parcels where cannabis dispensaries could locate within zoning districts that allow them based on the proposed ordinance’s sensitive uses, but outside a 1,000-foot school buffer. The most affected council districts (i.e., reduced # of parcels/land area where dispensaries are permitted) include District 1, District 5, and District 7.

2. State Sensitive Uses: Limit sensitive uses to those specified at Business & Professions Code Section 26054, including:
· K-12 schools
· Daycare centers
· Youth-oriented facilities
Business & Professions Code Section 26054 uses a 600-foot radius unless a local jurisdiction specifies a different one. The Medicinal and Adult-Use Cannabis Regulation and Safety Act does not limit the City of Sacramento to the sensitive uses specified at Business & Professions Code Section 26054.

Attachment 6 8 identifies parcels where cannabis dispensaries could locate within zoning districts that allow them based on State sensitive uses, but outside a 600-foot school buffer. Utilizing the State’s sensitive uses would result in a 758-acre increase (~8%) in parcels located outside of sensitive use buffers citywide when compared to the proposed ordinance. However, the State’s sensitive uses would result in a decrease in areas located outside of sensitive use buffers for Council District 5 and Council District 7.

This is due to the State’s inclusion of daycare centers as a sensitive use.

II. Permit Type
The proposed ordinance includes provisions relating to two land use permit types for cannabis land

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File ID: 2025-01728 11/18/2025
uses: 1) Administrative Permits; and 2) Conditional Use Permits. The proposed ordinance includes the following provisions relating to cannabis land use permit types:

1. Administrative Permits
a. Cannabis Uses: Cannabis production (e.g., cultivation, distribution, manufacturing); Cannabis testing; and
Cannabis dispensary outside all sensitive use buffers.
b. Notice: Early notice plus on-site posted notice, mailed notice of application submittal and decision to property owners within 600 feet of application. c. Recourse: Reconsideration by Planning Director where facts used to act on application are reviewed to ensure decision was accurate (e.g., denial warranted due to sensitive use location).

2. Conditional Use Permit
a. Cannabis Uses: Cannabis consumption lounge; and
Cannabis dispensary within any sensitive use buffer, except schools.
b. Notice: Early notice plus on-site posted notice and mailed notice of public hearing to owners and occupants within 500 feet of application.
c. Recourse: (1) After Planning & Design Commission acts on application, notice to Mayor and Councilmember in whose district the application is located for potential call-up to full City Council; and (2) applicant or interested party appeal to City Council for de novo review (i.e., anew) at a noticed public hearing.

An alternative permit requirement voiced by a minority of councilmembers and not included within the ordinance is summarized below.

1. Conditional Use Permit: For all cannabis uses.

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File ID: 2025-01728 11/18/2025
This standard would have the largest implications to District 6, District 2, and District 3 as these council districts have the most land outside sensitive use buffers (i.e., would be subject to administrative permit under proposed ordinance).

III. Cannabis Consumption Lounges
The proposed ordinance requires all cannabis consumption lounges to obtain Conditional Use Permit approval by the Planning & Design Commission. State law requires cannabis consumption lounges to be within a storefront dispensary building. Therefore, the ordinance uses the existing or proposed dispensary location to determine potentially suitable locations for cannabis consumption lounges rather than distance to sensitive uses. This regulatory approach allows all dispensaries, including those legal nonconforming to sensitive use buffers, to propose a cannabis consumption lounge.

Other Amendments
The proposed ordinance includes the following additional provisions relating to cannabis uses:

1. New Zones for Storefront Dispensaries
a. New Zones: Adds RMX, C-1, and C-3.
b. Existing Zones: SC, C-2, C-4, M-1, M-1(S), M-2, M-2(S), M-T.

2. Lawfully Established Cannabis Use
a. Regulation: Allows a lawfully established cannabis use ability to expand or modify if a sensitive use is established after the cannabis use.

3. Cannabis Production
a. Distribution: Removes cannabis distribution from the district-based square footage cap of 2.5 million square feet at City Code Section 17.228.900.E.2.

Cannabis cultivation is retained and still subject to cap. b. Processing: Updates cannabis production definition to include “cannabis processing” for clarification and consistency with state law.

Policy Considerations: When acting upon the proposed ordinance, City Code Section

17.916.010.D.1 requires consideration of two findings:

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File ID: 2025-01728 11/18/2025

1. Finding (Section 17.916.010.D.1.a): As amended, this title complements, supports, and facilities the implementation of the goals, policies, and other provisions of the general plan and the City’s specific plans and transit village plan.

Staff Analysis: The proposed ordinance advances the following 2040 General Plan goals:

Land Use Element
Goal LUP-2: Balanced and connected community with thriving neighborhoods and centers and development intensities linked to transit.

Goal LUP-4: Walkable, transit-oriented centers and corridors that concentrate new jobs, housing, and entertainment opportunities to support frequent, reliable transit service and foster connected, accessible neighborhoods.

Goal LUP-5: Attractive, thriving commercial centers that are well-located to serve the needs of Sacramento residents, workers, and visitors.

Goal LUP-7: Industrial opportunities in suitable locations to provide employment for Sacramento residents and promote inclusive economic growth in the city.

Goal LUP-11: Create built and natural environments within the city that prioritize, support, promote, and embrace social equity, ecological regeneration, responsible resource stewardship, and human health and well-being.

Economic Development Element
Goal E-1: A dynamic, resilient economy with a diverse array of business in established and emerging industry sectors.

Goal E-2: Sustained, inclusive growth that generates long-term, shared value in the community and creates economic opportunities for all residents.

Goal E-3: A business environment conducive to growth, investment, collaboration, and the exchange of ideas.

Environmental Justice
Goal EJ-5: Investments that address long-standing inequities, empower disadvantaged residents, and build neighborhood resilience.

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File ID: 2025-01728 11/18/2025
Youth, Parks, Recreation, and Open Space Element
Goal YPRO-1: An integrated system of parks, open space areas, shared-use paths, and recreational facilities that are welcoming, well-maintained, safe, and accessible to all the diverse communities of Sacramento.

2. Finding (Section 17.916.010.D.1.b): The amendment promotes the public health, safety, convenience, and welfare of the city.

Staff Analysis: The proposed ordinance promotes the public health, safety, convenience, and welfare of the city through regulations that:
· Are responsive to the 2022 Comprehensive Cannabis Study’s findings that cannabis land uses have not:
o Had a negative impact on other nearby retail or industrial uses. o Created increases in crime beyond the levels generated by other businesses. o Had a negative impact on nearby home values.
o Produced negative economic effects on commercial and residential districts. · Are equitable, fair, and balance competing viewpoints. · Provide practicable standards that are clear and verifiable. · Reduce existing barriers (e.g., permit type and cost). · Provide predictable outcomes for cannabis uses that comply with prescribed standards.

Economic Impacts: The Sacramento Comprehensive Cannabis Study, prepared by Economic Planning & Systems and dated May 8, 2022, provides the following summarized observations of the City’s first five years of the City’s fully operational regulatory environment for adult cannabis use:
· Based on taxes remitted to the City by cannabis businesses, the cannabis industry in Sacramento took in more than $800 million in 2021. The industry’s 2021 income is more than 3.5 times the income of the industry during the first full year of legalization in 2018.
· The cannabis industry is now among the top 10 employment sectors in the City, with approximately 8,000 workers, half of whom are estimated to be in the cultivation sector. · Cannabis operations generate a significant fiscal surplus ($19.8 million in 2021) to the City’s General Fund annually. Retail operations are the largest driver of fiscal surpluses, with an estimated surplus of $11.3 million attributable to retail cannabis operations in

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File ID: 2025-01728 11/18/2025
2021.
· Cannabis operations in the City are estimated to result in $2.2 billion in total economic output in the local economy, annually, inclusive of direct, indirect, and induced impacts.

Of the $2.2 billion in activity (in 2021), $606.3 million will be retained by employees of local businesses in the form of income.
· Cannabis operations generated $1.5 billion in direct economic activity (in 2021), $357.1 million of which is income. The remaining $746.2 million of economic activity reflects the estimated indirect and induced impacts supported by cannabis operations as spending ripples through the local economy. This level of economic activity generates support for approximately 12,500 full- and part-time jobs in the region, including 8,000 direct, 2,600 indirect, and 1,800 induced jobs.
· Cannabis cultivation activities are estimated to generate $1.6 billion in economic activity annually, supporting 7,000 jobs, the greatest level of impact generated out of all cannabis business groups analyzed.
· Business operations taxes are the largest revenue source for cannabis operation in the City. For the 2021/22 City budget, cannabis uses were anticipated to contribute approximately 73 percent of all business operations taxes generated in the City. · Revenues generated are significantly greater than the cost of operating the Office of Cannabis Management.
· 40% of local cannabis tax revenues are, pursuant to Measure L, to be spent on child and youth services. Tax revenue collected is placed into the Sacramento Children’s Fund and whose chief purpose is to support positive youth development and youth violence prevention programs - such as services for homeless youth and foster children; mental health counseling; substance-abuse treatment, prevention, and early intervention; and after-school activities - for children and youth less than 25 years old. · The local cannabis tax revenue for fiscal year 2024 was $23,351,809 (40% = $9,340,724).

Environmental Considerations: The Community Development Department, Environmental Planning Services Section has determined that the proposed ordinance is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

It can be seen with certainty that there is no possibility that the proposed ordinance may have a

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File ID: 2025-01728 11/18/2025
significant effect on the environment. The proposed ordinance modifies the permit-processing rules for cannabis production, testing, and dispensaries, all of which are currently authorized under the city code with a conditional use permit. The proposed ordinance authorizes these uses in additional zones (including the addition of the Residential Mixed Use (RMX), Limited Commercial Zone (C-1), and Central Business Zone (C-3), based on the conclusions in the 2022 Comprehensive Cannabis study, which determined that these uses have no impacts on the surrounding areas. The proposed ordinance also authorizes a new land use - cannabis consumption lounge - but this use is allowed only in storefront cannabis dispensaries, which is an existing authorized use, and only with approval of a conditional use permit, which is a discretionary entitlement in which environmental review will be undertaken during the permit process. Nonetheless, the addition of a consumption lounge within a storefront cannabis dispensary will not result in a significant effect on the environment. The proposed ordinance also refines the existing code’s separation requirements of all cannabis land uses from other ‘sensitive’ land uses (e.g., parks, libraries, community centers, youth-oriented facilities) and refines the definitions of some of these uses.

Sustainability: None.

Commission/Committee Action: The following actions have been taken to date regarding cannabis amendments to Title 17 of the City Code:
· On May 31, 2022, the City Council directed staff to evaluate seven points of direction relating to cannabis zoning regulations and return with recommended cannabis zoning amendments.
· On September 19, 2023, the Law and Legislation Committee directed Office of Cannabis Management (“OCM”) to develop a pilot framework for cannabis social consumption lounges.
· On May 21, 2024, the Law and Legislation Committee heard updates on the Title 17 Cannabis Amendments project and directed staff to bring back a package of policy recommendations for consideration.
· On May 21, 2024, OCM provided an informational update to the Law and Legislation Committee regarding a framework for consumption lounge business operating permits.

The Committee provided direction to return with a framework to allow consumption business operating permits for all storefront dispensaries. · On September 12, 2024, the Planning and Design Commission discussed preliminary recommendations of the Title 17 Cannabis Amendments Project and provided feedback to the proposed Title 17 cannabis amendments.

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· On September 17, 2024, OCM presented a cannabis consumption business operating permit framework to the Law and Legislation Committee. The Committee forwarded the pilot program concept for social consumption to City Council for consideration but requested a City Council workshop soliciting the expertise of public health experts regarding cannabis consumption statewide public health trends prior to Council consideration of social consumption.
· On October 22, 2024, the City Council heard presentations from public health experts discussing statewide public health trends and secondhand smoke in dispensaries. · On November 19, 2024, the City Council adopted an ordinance amending Title 5 concerning business regulations for cannabis consumption lounges. · On March 13, 2025, pursuant to City Code Section 17.916.010(B), the Planning and Design Commission passed a motion forwarding a recommendation of approval, as amended to require a conditional use permit for cannabis cultivation and cannabis dispensaries and add 1) childcare center; 2) church or faith congregation; and 3) other dispensary to the sensitive use list, to the City Council. · On April 8, 2025, pursuant Chapter 13 of the City Council Rules of Procedure, the Law and Legislation Committee passed a motion forwarding the proposed cannabis ordinance and Planning and Design Commission recommendations to the City Council for discussion and direction.
· On September 16, 2025, the City Council reviewed, commented, and provided direction to staff on the desired contents of an ordinance.

Rationale for Recommendation: The proposed ordinance results in zoning regulations for cannabis land uses that:
· Are responsive to the 2022 Comprehensive Cannabis Study’s findings that cannabis land uses have not:
o Had a negative impact on other nearby retail or industrial uses. o Created increases in crime beyond the levels generated by other businesses. o Had a negative impact on nearby home values.
o Produced negative economic effects on commercial and residential districts. · Are equitable, fair, and balance competing viewpoints. · Provide practicable standards that are clear and verifiable.

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· Reduce existing barriers (e.g., permit type and cost). · Provide predictable outcomes for cannabis uses that comply with prescribed standards.

Staff recommends the City Council review and adopt the attached ordinance amending various provisions of Title 17 (Planning and Development Code) relating to cannabis land uses to be published in its entirety in lieu of passing for publication pursuant to section 32 of Article III of the Sacramento City Charter.

Financial Considerations: Not applicable.

Local Business Enterprise (LBE): Not applicable.

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ORDINANCE NO.

Adopted by the Sacramento City Council
Date Adopted

AN ORDINANCE AMENDING VARIOUS PROVISIONS OF TITLE 17

OF THE SACRAMENTO CITY CODE, RELATING TO CANNABIS LAND USES

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

The city council finds the following:

1. As amended by this ordinance, the Planning and Development Code complements, supports, and facilitates the implementation of the goals, policies, and other provisions of the general plan and the city’s specific plans and transit village plans; and

2. The amendments in this ordinance promote the public health, safety, convenience, and welfare of the city.

SECTION 2.

A. Section 17.108.040 (“C” definitions) of the Sacramento City Code is hereby amended as follows:

1. A definition of “cannabis consumption lo unge” is hereby added to read as follows:

“Cannabis consumption lounge” means the area within a storefront cannabis dispensary where cannabis or cannabis products are allowed to be consumed in accordance with this code.

2. A definition of “cannabis dispensary, stor efront” is hereby added to read as follows:

“Cannabis dispensary, storefront” has the same meaning as in section 5.150.020.

3. A definition of “cannabis manufacturing, nonvolatile” is hereby added to read as follows:

“Cannabis manufacturing, nonvolatile” means cannabis manufacturing done without the use of volatile solvents.

4. A definition of “cannabis processing ” is hereby added to read as follows:

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“Cannabis processing” means all activities associated with the drying, curing, sifting, grading, trimming, rolling, storing, packaging, and labeling of cannabis or nonmanufactured cannabis products as defined section 15000 of title 4 of the California Code of Regulations.

5. A definition of “cannabis production ” is hereby added to read as follows:

“Cannabis production” means cannabis cultivation, cannabis distribution, cannabis manufacturing, and cannabis processing, and any combination thereof.

6. The definition of “cannabis testing” is hereby amended to read as follows:

“Cannabis testing” means performing scientific analysis of cannabis or cannabis products to determine its chemical profile, the presence of contaminants, or other similar data, and research and development related to the innovation and improvement of cannabis products and the processing of cannabis.

7. The definition of “cannabis use” is hereby amended to read as follows:

“Cannabis use” means cannabis production, cannabis testing, cannabis dispensary, and cannabis consumption lounge.

B. Except as amende d by subsection A above, all provisions of section 17.108.040 remain unchanged and in full effect.

SECTION 3.

A. Section 17.200.110 (A zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis cultivation” is he reby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation Subject to special use regulations in article IX of chapter

17.228

2. The “cannabis cultivation” row in subsec tion B.2 (conditional uses; industrial and agricultural uses) is hereby deleted.

Cannabis
cultivation
Subject to the special use regulations in section

17.228.900
ZA/PDC

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B. Except as amende d by subsection A above, all provisions of Section 17.200.110 remain unchanged and in full effect.

SECTION 4.

A. Section 17.212.110 (R MX zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary located more than 600 feet from all sensitive uses as defined in section

17.228.910 (delivery-only cannabis dispensary not allowed);

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

3. A row for “cannabis dispensary” is here by added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Storefront cannabis dispensary
permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

B. Except as amended by subs ection A above, all provisions of section 17.212.110 remain unchanged and in full effect.

SECTION 5.

A. Section 17.216.510 (SC-zone) of the Sacramento City Code is hereby amended as follows:

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1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary located more than 600 feet from all sensitive uses as defined in section

17.228.910 (delivery-only cannabis dispensary not allowed);

Subject to special use regulations in article IX of chapter

17.228

2. The “cannabis dispensary” row in subsecti on B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary
Subject to special use regulations in
section 17.228.920 Storefront
cannabis dispensary permitted with a
conditional use permit if located
within 600 feet of any sensitive use, as
defined in section 17.228.910,
excluding a school;

Subject to special use regulations in
section 17.228.920 article IX of
chapter 17.228
ZA/PDC

3. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

B. Except as amended by subs ection A above, all provisions of section 17.216.510 remain unchanged and in full effect.

SECTION 6.

A. Section 17.216.610 (C- 1 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

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Cannabis dispensary
Limited to storefront cannabis dispensary located more than 600 feet from all sensitive uses as defined in section

17.228.910 (delivery-only cannabis dispensary not allowed);

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

3. A row for “cannabis dispensary” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Storefront cannabis dispensary
permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

B. Except as amended by subs ection A above, all provisions of section 17.216.610 remain unchanged and in full effect.

SECTION 7.

A. Section 17.216.710 (C- 2 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses, as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

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2. A row for “cannabis cultivation” is here by added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distri bution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subs ection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis manufacturing
Allowed if extraction processes are not conducted with a volatile solvent and the use is exempt from the conditional use permit requirement pursuant to section 17.228.900.C Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A. 3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228section 17.228.910

4. The “cannabis dispensary” row in subsec tion B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary
Subject to the special use regulations
in section 17.228.920Permitted with a
conditional use permit if located
within 600 feet of any sensitive use, as
defined in section 17.228.910,
excluding a school;

ZA/PDC

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Subject to special use regulations in
article IX of chapter 17.228

5. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

6. The “cannabis cultivation,” “cannabis di stribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

Cannabis cultivation
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900
ZA/PDC
Cannabis distribution Subject to special use regulations in section 17.228.900 ZA/PDC
Cannabis manufacturing
Permitted with a conditional use
permit if extraction processes are not
conducted with a volatile solvent
and—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

ZA/PDC

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Subject to special use regulations in
section 17.228.900

B. Except as amended by subs ection A above, all provisions of section 17.216.710 remain unchanged and in full effect.

SECTION 8.

A. Section 17.216.810 (C-3 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary located more than 600 feet from all sensitive uses as defined in section

17.228.910 (delivery-only cannabis dispensary not allowed);

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

3. A row for “cannabis dispensary” is here by added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Storefront dispensary permitted with
a conditional use permit if located
within 600 feet of any sensitive use, as
defined in section 17.228.910,
excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

B. Except as amended by subs ection A above, all provisions of section 17.216.810 remain unchanged and in full effect.

Page 9 of 34 ends

SECTION 9.

A. Section 17.216.910 (C- 4 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is here by added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distri bution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subs ection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A. 3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Page 10 of 34 ends

Cannabis testing Subject to special use regulations in article IX of chapter

17.228section 17.228.910

6. The “cannabis dispensary” row in subsec tion B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Subject to special use regulations in
article IX of chapter 17.228
ZA/PDC

7. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

8. The “cannabis cultivation,” “cannabis di stribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

Cannabis cultivation
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900
ZA/PDC
Cannabis distribution Subject to special use regulations in section 17.229.900 ZA/PDC

Page 11 of 34 ends

Cannabis manufacturing
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900
ZA/PDC

B. Except as amended by subs ection A above, all provisions of section 17.216.910 remain unchanged and in full effect.

SECTION 10.

A. Section 17.220.110 (M-1 zone ) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is here by added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

Page 12 of 34 ends

3. A row for “cannabis distri bution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subs ection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A. 3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228section 17.228.910

6. The “cannabis dispensary” row in subsec tion B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Subject to special use regulations in
article IX of chapter 17.228
ZA/PDC

7. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

Page 13 of 34 ends

8. The “cannabis cultivation,” “cannabis di stribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

Cannabis cultivation
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900
ZA/PDC
Cannabis distribution Subject to special use regulations in section 17.229.900 ZA/PDC
Cannabis manufacturing
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900
ZA/PDC

B. Except as amended by subs ection A above, all provisions of section 17.220.110 remain unchanged and in full effect.

SECTION 11.

A. Section 17.220.210 (M-1(S) zo ne) of the Sacramento City Code is hereby amended as follows:

Page 14 of 34 ends

1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is here by added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distri bution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228;

4. The “cannabis manufacturing” row in subs ection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A. 3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228section 17.228.910

Page 15 of 34 ends

6. The “cannabis dispensary” row in subsec tion B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Subject to special use regulations in
article IX of chapter 17.228
ZA/PDC

7. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

8. The “cannabis cultivation,” “cannabis di stribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

Cannabis cultivation
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

ZA/PDC

Page 16 of 34 ends

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900

B. Except as amended by subs ection A above, all provisions of section 17.220.210 remain unchanged and in full effect.

SECTION 12.

A. Section 17.220.310 (M-2 zone ) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is here by added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distri bution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Page 17 of 34 ends

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subs ection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A. 3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228section 17.228.910

6. The “cannabis dispensary” row in subsec tion B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Subject to special use regulations in
article IX of chapter 17.228
ZA/PDC

7. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

8. The “cannabis cultivation,” “cannabis di stribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

Page 18 of 34 ends

Cannabis cultivation
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900
ZA/PDC

B. Except as amended by subs ection A above, all provisions of section 17.220.310 remain unchanged and in full effect.

SECTION 13.

A. Section 17.220.410 (M-2(S) zo ne) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Page 19 of 34 ends

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is here by added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distri bution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subs ection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A. 3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228section 17.228.910

6. The “cannabis dispensary” row in subsec tion B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Page 20 of 34 ends

Subject to special use regulations in
article IX of chapter 17.228
ZA/PDC

7. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

8. The “cannabis cultivation,” “cannabis di stribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

Cannabis cultivation
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
ZA/PDC

Page 21 of 34 ends

special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900

B. Except as amended by subs ection A above, all provisions of section 17.220.410 remain unchanged and in full effect.

SECTION 14.

A. Section 17.220.510 (MIP zone ) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis distribution” is he reby added to the table in subsection A.2 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subs ection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A. 3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228section 17.228.910

Page 22 of 34 ends

3. The “cannabis distribution” and “canna bis manufacturing” rows in subsection B.1 (conditional uses; industrial and agricultural uses) are hereby deleted.

Cannabis distribution Subject to special use regulations in section 17.229.900 ZA/PDC
Cannabis manufacturing
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900
ZA/PDC

B. Except as amended by subs ection A above, all provisions of section 17.220.510 remain unchanged and in full effect.

SECTION 15.

A. Section 17.220.610 (MRD zone) of the Sacr amento City Code is hereby amended as follows:

1. The “cannabis testing” row in subsection A.2 (permitted uses, commercial and institutional uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228section 17.228.950

2. A row for “cannabis distribution” is he reby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subs ection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Page 23 of 34 ends

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis distribution” and “canna bis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

Cannabis distribution Subject to special use regulations in section 17.229.900 ZA/PDC
Cannabis manufacturing
Permitted with a conditional use
permit if—

1. Use is located within ½ mile from
the center of an existing or proposed
light rail station platform, subject to
special use regulations in section

17.228.127; or

2. Use is located greater than ½ mile
from the center of an existing or
proposed light rail station platform.

Subject to special use regulations in
section 17.228.900
ZA/PDC

B. Except as amended by subs ection A above, all provisions of section 17.220.610 remain unchanged and in full effect.

SECTION 16.

A. Section 17.220.710 (MT zone) of the Sacramento City Code is hereby amended as follows:

1. The “cannabis testing” row in subsection A.2 (permitted uses; commercial and institutional uses) is amended to read as follows:

Page 24 of 34 ends

Cannabis testing Subject to special use regulations in article IX of chapter

17.228section 17.228.910

2. A row for “cannabis dispensary” is here by added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis cultivation” is here by added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distri bution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. A row for “cannabis manufacturing” is here by added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis manufacturing
Limited to nonvolatile manufacturing;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis dispensary” row in subsec tion B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

ZA/PDC

Page 25 of 34 ends

Subject to special use regulations in
article IX of chapter 17.228

5. A row for “cannabis consumpt ion lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

6. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing, nonvolatile” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

Cannabis cultivation Subject to special use regulations in section 17.228.900 ZA/PDC
Cannabis distribution Subject to special use regulations in section 17.229.900 ZA/PDC
Cannabis manufacturing,
nonvolatile
Subject to special use regulations in
section 17.228.900 ZA/PDC

B. Except as amended by subs ection A above, all provisions of section 17.220.710 remain unchanged and in full effect.

SECTION 17.

Article IX of chapter 17.228 of the Sacramento City Code is hereby deleted.

Article IX. Cannabis

17.228.900 Cannabis production.

A. For purposes of this section, “cannabis production” includes cannabis cultivation, cannabis distribution, and cannabis manufacturing.

B. A conditional use permit is required for cannabis production, except for the following:

1. Cannabis manufacturing that complies with the following:
a. The use is limited to only packaging and labeling of cannabis or cannabis products, or producing edible or topical cannabis products using an infusion process; b. Extraction is no t being conducted; and
c. The gross receipts of th e use are under $100,000 annually.

2. Cannabis distribution in accordance with a type-S cannabis distribution permit, as described in article VIII of chapter 5.150.

Page 26 of 34 ends

3. Cannabis distribution in accordance with a type-T cannabis distribution permit, as described in article VIII of chapter 5.150.

4. For the purposes of this section, “gross re ceipts” has the same meaning as provided in section 3.08.020.

C. Except as provided in subsection D, the co nditional use permit, as required in subsection B, must be approved by the zoning administrator.

D. A conditional use permit, as required in subs ection B, must be approved by the planning and design commission where the production site is within 600 feet of:

1. A park identified as a neighborhood park or community park in the city’s most recently adopted Parks and Recreation Master Plan; or

2. A park not yet identified in the city’s most recently adopted Parks and Recreation Master Plan.

E. The decision-maker may approve a conditi onal use permit for cannabis production based on the following findings:

1. The findings set forth in section 17.808.200.C; and

2. The proposed cannabis production will no t result in undue concentration of cannabis production establishments. An undue concentration of cannabis production establishments will result if the following condition is met:

a. The proposed cannabis production use is located within the area bounded by Power Inn Road to the west, Folsom Boulevard to the north, and the city limits to the east and south; and will result in more than 2.5 million square feet of building floor space approved by a conditional use permit for cannabis production use in that area. Building floor space designated for a cannabis manufacturing use in a conditional use permit may be excluded from the 2.5 million square footage calculation.

3. If the proposed cannabis production incl udes cannabis manufacturing with a volatile solvent, the fire chief or designee has determined that the proposed cannabis manufacturing use is compatible with surrounding uses.

F. In any zone, cannabis production must comply with the following provisions:

1. Cannabis production must be within a fully enclosed building and must not be visible from the public right-of-way.

Page 27 of 34 ends

2. Notwithstanding the provisions of Calif ornia Business and Professions Code section 26054(b), a cannabis production site cannot be located within a 600-foot radius of a school. For purposes of this section, “school” means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes.

3. The cannabis production site cannot have more than one sign. The sign may be attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area.

4. Cannabis production must comply with all applicable state and local laws.

5. Each property owner seek ing a conditional use permit for cannabis production shall provide a neighborhood responsibility plan in order for the decision-maker to make the requisite findings identified in subsection E. The neighborhood responsibility plan must address the adverse impacts of cannabis distribution on the surrounding area. Compliance with the neighborhood responsibility plan shall be achieved through an agreement with the city, conditions of approval on the use permit, or through other means acceptable to the city.

6. Cannabis extraction must be performed in a manner that will not create explosive or ignitable mixtures, as approved by the fire chief or designee.

G. In the C-2 zone, cannabis production mu st comply with the following provisions:

1. Cannabis distribution and nonvolatile canna bis manufacturing cannot exceed a total of 6,400 square feet in area.

2. Cannabis distribution cannot be the only cannabis production use on the site.

H. Notice to city council. As soon as reason ably practicable after the zoning administrator or planning and design commission makes a decision on a conditional use permit required to establish cannabis production, the planning director shall report that decision to the mayor and the councilmember in whose district the project is located, by sending the report by electronic mail and confirming that each received it.

I. Procedures for call-up review. The mayor or the councilmember in whose district the project is located may call up for city council review any decision described in subsection H by filing a written request with the planning director within 10 business days of the zoning administrator’s or planning and design commission’s decision. If both a council member call-up and director-level decision appeal are pending on the same project, the city council will consider both at the same time. Notice of the city council hearing shall be given in the manner provided in section 17.812.010.A.2.a. The hearing before the city council shall be de novo.

J. Withdrawal of request for review. The re quester under subsection I may withdraw that request. The withdrawal shall be noted on the next regularly scheduled meeting of the city

Page 28 of 34 ends

council and shall be considered to have occurred on that date. Any other member of the city council shall have 10 days thereafter to file a request for call-up review. If the tenth day is a non-business day, the last day to file the request is the next business day. Noticing and hearing of the matter shall be as set forth in subsection I.

K. A conditional use permit issued in accord ance with this section must specify whether the use allowed is for cannabis cultivation, cannabis distribution, or cannabis manufacturing. An addition of any use specified in this paragraph to the allowed uses specified in a conditional use permit is a modification of the terms and conditions of the conditional use permit subject to section 17.808.440.

17.228.910 Cannabis testing.

A. Cannabis testing may only be established in the C-2, C-4, M-1, M-1(S), M-2, M-2(S), MIP, MRD, and M-T zones.

B. In any zone, cannabis testing must comply with the following provisions

1. The cannabis testing site cannot be located within 600 feet of a school. For purposes of this section, “school” means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes.

2. The cannabis testing must comply with all applicable state and local laws.

17.228.920 Cannabis dispensary.

A. For purposes of this section, the following definitions apply:

1. “School” means any public or private sch ool providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes.

2. “Substance abuse rehabilitation center” me ans any facility that provides care for persons who have a dependency on alcohol or controlled substances, except any hospital, city or county jail, or state prison. The care provided by a substance abuse rehabilitation center, includes medication, patient counseling, group therapy, physical conditioning, family therapy, and dietetic services.

3. “Youth-oriented facility” means any establis hment that caters to or provides services primarily intended for minors; that is patronized predominantly by minors; or where the people who regularly congregate or assemble are predominantly minors.

Page 29 of 34 ends

B. A conditional use permit is required to esta blish a cannabis dispensary in the C-2, C-4, M-1, M-1(S), M-2, M-2(S), M-T, and SC zones.

C. Except as provided in subsection D, the co nditional use permit, as required in subsection B, must be approved by the zoning administrator.

D. A conditional use permit, as required in subs ection B, must be approved by the planning and design commission where any of the following conditions apply:

1. The cannabis dispensary is a storefront ca nnabis dispensary, as defined in chapter 5.150, and the site is within 600 feet of another storefront cannabis dispensary site;

2. The cannabis dispensary site is within 600 feet of any park, childcare center, in-home child care (family day care home), youth-oriented facility, church or faith congregation, substance abuse center, or cinema;

3. The cannabis dispensary site is within 600 feet of any tobacco retailer that has 15,000 square feet or less of gross floor area; or

4. The cannabis dispensary site is wi thin 300 feet of a residential zone.

E. In any zone, a cannabis dispensary must comply with the following provisions:

1. Cannabis dispensary operations must be wi thin a fully enclosed building and must not be visible from the public right-of-way.

2. The cannabis dispensary site cannot be located within 600 feet of a school.

3. The cannabis dispensary must comply wi th all applicable state and local laws.

4. Each property owner seek ing a conditional use permit for cannabis dispensary shall provide a neighborhood responsibility plan in order for the decision-maker to make the requisite findings set forth in section 17.808.200. The neighborhood responsibility plan must address the adverse impacts of a cannabis dispensary on the surrounding area. Compliance with the neighborhood responsibility plan shall be achieved through an agreement with the city, conditions of approval on the use permit, or through other means acceptable to the city.

5. Notwithstanding section 17. 452.040.B.2.d, no cannabis dispensary may be established in a planned unit development, unless the planned unit development schematic plan and design guidelines expressly authorize the use.

F. Notice to city council. As soon as reason ably practicable after the zoning administrator or planning and design commission makes a decision on a conditional use permit required to establish a cannabis dispensary, the planning director shall report that decision to the mayor

Page 30 of 34 ends

and the councilmember in whose district the project is located, by sending the report by electronic mail and confirming that each received it.

G. Procedures for call-up review. The mayor or the councilmember in whose district the project is located may call up for city council review any decision described in subsection F by filing a written request with the planning director within 10 business days of the zoning administrator’s or planning and design commission’s decision. If both a council member call-up and director-level decision appeal are pending on the same project, the city council will consider both at the same time. Notice of the city council hearing shall be given in the manner provided in section 17.812.010.A.2.a. The hearing before the city council shall be de novo.

H. Withdrawal of request for review. The re quester under subsection G may withdraw that request. The withdrawal shall be noted on the next regularly scheduled meeting of the city council and shall be considered to have occurred on that date. Any other member of the city council shall have 10 days thereafter to file a request for call-up review. If the tenth day is a non-business day, the last day to file the request is the next business day. Noticing and hearing of the matter shall be as set forth in subsection G.

I. A conditional use permit issued in accord ance with this section must specify whether the use allowed is for a storefront cannabis dispensary or a delivery-only cannabis dispensary, and for the sale of medical cannabis or adult-use cannabis. An addition of any use specified in this paragraph to the allowed uses specified in a conditional use permit is a modification of the terms and conditions of the conditional use permit subject to section 17.808.440.

J. A medical marijuana dispensary use that has a valid conditional use permit on the effective date of this ordinance is deemed to have an approved conditional use permit for a cannabis dispensary use allowing for a storefront cannabis dispensary and for the sale of medical cannabis, if the property owner provides a neighborhood responsibility plan described in subsection E.4. The deemed approved conditional use permit for a cannabis dispensary use shall be subject to all the provisions of this title relating to conditional use permits.

SECTION 18.

Article IX is hereby added to chapter 17.228 of the Sacramento City Code, to read as follows:

Article IX. Cannabis

17.228.900 Purpose and intent.

The purpose of this article is to authorize cannabis uses that comply with this article. The regulations in this article work in harmony with the regulations in chapter

5.150.

17.228.910 Definitions.

Page 31 of 34 ends

For purposes of this article, the following definitions apply:

A. “Community center” means a facility designated as a community center, senior center, or clubhouse in the city’s most recently adopted parks plan.

B. “Park” means a public park designated in the city’s most recently adopted parks plan as a multi-use regional park, multi-use community park, special use community park, multi-use neighborhood park, or neighborhood play lot.

C. “School” means a public or private school providing instruction in kindergarten or any grade from 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes.

D. “Sensitive use” means a lawfully-established community center, library, museum, park, school, substance abuse rehabilitation center, or youth-oriented facility.

E. “Substance abuse rehabilitation center” means a facility licensed by the State Department of Health Care Services pursuant to California Health and Safety Code sections 11834.01 through 11834.50.

F. “Youth-oriented facility” means a facility that is operated by a nonprofit entity that primarily caters to minors or primarily provides services intended for minors.

17.228.920 General requirements.

A. Administrative permit.

1. An administrative permit is required to—

a. Establish a cannabis dispensary use located more than 600 feet from all sensitive uses;

b. Establish a cannabis production or cannabis testing use; or

c. Modify an existing cannabis dispensary, cannabis
production, or cannabis testing use previously authorized by an administrative permit.

1.2. Public notice.

a. The city, at least ten days before issuing a decision on an administrative permit under this article, shall—

Page 32 of 34 ends

i. Post notice of the application at the subject real
property; and

ii. Provide notice as set forth in subsection A.2.c.

b. The city shall provide noti ce of all final decisions on administrative permits authorized by this section as set forth in subsection A.2.c.

c. The notice required by s ubsections A.2.a and A.2.b must be given by mail or personal delivery to all owners of real property located within 600 feet of the real property that is the subject of the application, utilizing the owners' names and addresses shown on the latest county equalized assessment roll. In lieu of the equalized assessment roll, other records of the county assessor or tax collector that contain more recent information may be used.

B. Conditional use permit.

1. A conditional use permit approved by the planning and design commission is required to establish—

a. A cannabis dispensary within 600 feet of any sensitive use, as defined in section 17.228.910, excluding a school.

b. A cannabis consumption lounge.

2. Conditional use permits for cannabis uses are subject to the following:

a. Notice to city council. As soon as reasonably practicable after the planning and design commission makes a decision on a conditional use permit required by this article, the planning director shall report that decision to the mayor and the councilmember in whose district the project is located, by sending the report by electronic mail and confirming that each received it.

b. Call-up review. The mayor or the councilmember in whose district the project is located may call up for city council review any decision by the planning and design commission on a conditional use permit required by this article by filing a written request with the planning director within ten business days of the planning and design commission's decision. If both a council member call-up and commission-level decision appeal are pending on the same project, the city council shall consider both at the same time. Notice of the city council hearing shall be given in the manner provided in section 17.812.010.A.2.a. The hearing before the city council is de novo.

Page 33 of 34 ends

c. Withdrawal of request for review. The requester under subsection B.2.b may withdraw that request. The withdrawal must be noted on the agenda of the next regularly scheduled meeting of the city council and is considered to have occurred on the date of that meeting. Any other member of the city council may file a request for call-up review within ten days of the withdrawal. If the tenth day is a non-business day, the last day to file the request is the next business day. Notice of the city council hearing shall be given in the manner provided in section 17.812.010.A.2.a.

The hearing before the city council is de novo.

C. Distance from sensitive uses.

1. Measuring distance. Under this article, the distance from a cannabis use to another use is the shortest distance measured in a straight line between the two closest property lines.

2. Distance from schools. No cannabis use, except a consumption lounge, may be established within 600 feet of a school.

3. First-in-time – lawfully-established cannabis use. Notwithstanding any other provision of this title, a lawfully-established cannabis use may be modified or expanded without regard to whether it is within 600 feet of a sensitive use if that sensitive use was established after the lawfully-established cannabis use. All other provisions of this title apply, including the findings required by section 17.808.200 when applicable.

4. Maps.

a. All applications under this article must include a scaled map that identifies by name, address, and assessor parcel number all sensitive uses within 600 feet of the project site.

b. Each applicant must attest in writing, under penalty of perjury, that the map and accompanying information is true and correct.

D. Identification of approved uses. Any permit issued in accordance with this article must specifically identify each authorized cannabis use – cannabis production (cultivation, distribution, processing, or manufacturing), cannabis testing, cannabis dispensary (store-front cannabis dispensary, delivery-only cannabis dispensary, or both), or cannabis consumption lounge.

17.228.930 Cannabis production.

A. Power Inn area. No permit provided for in this title will be granted for cannabis cultivation in the area bounded by Power Inn Road to the west, Folsom

Page 34 of 34 ends

Boulevard to the north, and the city limits to the east and south, if the total of all cannabis cultivation uses in that area will exceed 2.5 million square feet.

B. C-2 zone. In the C-2 zone, cannabis production must comply with the following provisions:

1. Cannabis distribution and nonv olatile cannabis manufacturing cannot exceed a total of 6,400 square feet per site.

2. Cannabis distribution cannot be th e only cannabis production use on a site.

C. Signs. A cannabis production site cannot have more than one sign. The sign may be attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area.

17.228.940 Cannabis testing – signs.

A cannabis testing site cannot have more than one sign. The sign may be attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area.

17.228.950 Cannabis consumption lounges – location.

A cannabis consumption lounge may only be located within a building with a storefront cannabis dispensary.

17.228.960 Medical marijuana dispensaries.

A medical marijuana dispensary with a valid conditional use permit on the effective date of the ordinance that codified this article is deemed to have an approved conditional use permit for a cannabis dispensary allowing for a storefront cannabis dispensary for the sale of medical and adult-use cannabis.

Page 1 of 24 ends

ORDINANCE NO.

Adopted by the Sacramento City Council
Date Adopted

AN ORDINANCE AMENDING VARIOUS PROVISIONS OF TITLE 17

OF THE SACRAMENTO CITY CODE, RELATING TO CANNABIS LAND USES

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

The city council finds the following:

2. The amendments in this ordinance promote the public health, safety, convenience, and welfare of the city.

SECTION 2.

A. Section 17.108.040 (“C” definitions) of the Sacramento City Code is hereby amended as follows:

1. A definition of “cannabis consumption lounge” is hereby added to read as follows:

“Cannabis consumption lounge” means the area within a storefront cannabis dispensary where cannabis or cannabis products are allowed to be consumed in accordance with this code.

2. A definition of “cannabis dispensary, storefront” is hereby added to read as follows:

“Cannabis dispensary, storefront” has the same meaning as in section 5.150.020.

3. A definition of “cannabis manufacturing, nonvolatile” is hereby added to read as follows:

“Cannabis manufacturing, nonvolatile” means cannabis manufacturing done without the use of volatile solvents.

4. A definition of “cannabis processing” is hereby added to read as follows:

Page 2 of 24 ends

5. A definition of “cannabis production” is hereby added to read as follows:

“Cannabis production” means cannabis cultivation, cannabis distribution, cannabis manufacturing, and cannabis processing, and any combination thereof.

6. The definition of “cannabis testing” is hereby amended to read as follows:

7. The definition of “cannabis use” is hereby amended to read as follows:

“Cannabis use” means cannabis production, cannabis testing, cannabis dispensary, and cannabis consumption lounge.

B. Except as amended by subsection A above, all provisions of section 17.108.040 remain unchanged and in full effect.

SECTION 3.

A. Section 17.200.110 ( A zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis cultivation” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation Subject to special use regulations in article IX of chapter

17.228

2. The “cannabis cultivation” row in subsection B.2 (conditional uses; industrial and agricultural uses) is hereby deleted.

B. Except as amended by subsection A above, all provisions of Section 17.200.110 remain unchanged and in full effect.

Page 3 of 24 ends

SECTION 4.

A. Section 17.212.110 (RMX zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary located more than 600 feet from all sensitive uses as defined in section

17.228.910 (delivery-only cannabis dispensary not allowed);

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

3. A row for “cannabis dispensary” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Storefront cannabis dispensary
permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

B. Except as amended by subsection A above, all provisions of section 17.212.110 remain unchanged and in full effect.

SECTION 5.

A. Section 17.216.510 (SC-zone) of the Sacramento City Code is hereby amended as follows:

Page 4 of 24 ends

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary located more than 600 feet from all sensitive uses as defined in section

17.228.910 (delivery-only cannabis dispensary not allowed);

Subject to special use regulations in article IX of chapter

17.228

2. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary
Storefront cannabis dispensary
permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

3. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

B. Except as amended by subsection A above, all provisions of section 17.216.510 remain unchanged and in full effect.

SECTION 6.

A. Section 17.216.610 (C-1 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary located more than 600 feet from all sensitive uses as defined in section

17.228.910 (delivery-only cannabis dispensary not allowed);

Page 5 of 24 ends

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

3. A row for “cannabis dispensary” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Storefront cannabis dispensary
permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

B. Except as amended by subsection A above, all provisions of section 17.216.610 remain unchanged and in full effect.

SECTION 7.

A. Section 17.216.710 (C-2 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses, as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Page 6 of 24 ends

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distribution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis manufacturing
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary
Permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

5. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

Page 7 of 24 ends

6. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted .

B. Except as amended by subsection A above, all provisions of section 17.216.710 remain unchanged and in full effect.

SECTION 8.

A. Section 17.216.810 (C-3 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary located more than 600 feet from all sensitive uses as defined in section

17.228.910 (delivery-only cannabis dispensary not allowed);

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

3. A row for “cannabis dispensary” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Storefront dispensary permitted with
a conditional use permit if located
within 600 feet of any sensitive use, as
defined in section 17.228.910,
excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

Page 8 of 24 ends

B. Except as amended by subsection A above, all provisions of section 17.216.810 remain unchanged and in full effect.

SECTION 9.

A. Section 17.216.910 (C -4 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distribution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis manufacturing
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

Page 9 of 24 ends

5. The “cannabis testing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

6. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary
Permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

7. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

8. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted .

B. Except as amended by subsection A above, all provisions of section 17.216.910 remain unchanged and in full effect.

SECTION 10.

A. Section 17.220.110 (M -1 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Page 10 of 24 ends

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distribution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis manufacturing
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

6. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary Permitted with a conditional use
permit if located within 600 feet of PDC

Page 11 of 24 ends

any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228

7. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

8. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted .

B. Except as amended by subsection A above, all provisions of section 17.220.110 remain unchanged and in full effect.

SECTION 11.

A. Section 17.220.210 (M -1(S) zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Page 12 of 24 ends

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distribution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228;

4. The “cannabis manufacturing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis manufacturing
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

6. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary
Permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

7. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

Page 13 of 24 ends

8. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted .

B. Except as amended by subsection A above, all provisions of section 17.220.210 remain unchanged and in full effect.

SECTION 12.

A. Section 17.220.310 (M -2 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distribution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Page 14 of 24 ends

Cannabis manufacturing
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

6. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary
Permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

7. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

8. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.220.310 remain unchanged and in full effect.

SECTION 13.

Page 15 of 24 ends

A. Section 17.220.410 (M -2(S) zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis cultivation” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis distribution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis manufacturing
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

Page 16 of 24 ends

6. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary
Permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

7. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

8. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.220.410 remain unchanged and in full effect.

SECTION 14.

A. Section 17.220.510 (MIP zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis distribution” is hereby added to the table in subsection A.2 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Page 17 of 24 ends

Cannabis manufacturing
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis testing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

3. The “cannabis distribution” and “cannabis manufacturing” rows in subsection B.1 (conditional uses; industrial and agricultural uses) are hereby deleted .

B. Except as amended by subsection A above, all provisions of section 17.220.510 remain unchanged and in full effect.

SECTION 15.

A. Section 17.220.610 (M RD zone) of the Sacramento City Code is hereby amended as follows:

1. The “cannabis testing” row in subsection A.2 (permitted uses, commercial and institutional uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis distribution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis manufacturing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Page 18 of 24 ends

Cannabis manufacturing
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis distribution” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted .

B. Except as amended by subsection A above, all provisions of section 17.220.610 remain unchanged and in full effect.

SECTION 16.

A. Section 17.220.710 (M T zone) of the Sacramento City Code is hereby amended as follows:

1. The “cannabis testing” row in subsection A.2 (permitted uses; commercial and institutional uses) is amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Permitted if located more than 600 feet from all sensitive uses as defined in section 17.228.910;

Subject to special use regulations in article IX of chapter

17.228

3. A row for “cannabis cultivation” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation Subject to special use regulations in article IX of chapter

17.228

Page 19 of 24 ends

3. A row for “cannabis distribution” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

4. A row for “cannabis manufacturing” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis manufacturing
Limited to nonvolatile manufacturing;

Subject to special use regulations in article IX of chapter

17.228

5. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby amended to read as follows:

Cannabis dispensary
Permitted with a conditional use
permit if located within 600 feet of
any sensitive use, as defined in section

17.228.910, excluding a school;

Subject to special use regulations in
article IX of chapter 17.228
PDC

5. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

B. Except as amended by subsection A above, all provisions of section 17.220.710 remain unchanged and in full effect.

Page 20 of 24 ends

SECTION 17.

Article IX of chapter 17.228 of the Sacramento City Code is hereby deleted.

SECTION 18.

Article IX is hereby added to chapter 17.228 of the Sacramento City Code, to read as follows:

Article IX. Cannabis

17.228.900 Purpose and intent.

The purpose of this article is to authorize cannabis uses that comply with this article. The regulations in this article work in harmony with the regulations in chapter

5.150.

17.228.910 Definitions.

For purposes of this article, the following definitions apply:

A. “Community center” means a facility designated as a community center, senior center, or clubhouse in the city’s most recently adopted parks plan.

D. “Sensitive use” means a lawfully-established community center, library, museum, park, school, substance abuse rehabilitation center, or youth-oriented facility.

F. “Youth-oriented facility” means a facility that is operated by a nonprofit entity that primarily caters to minors or primarily provides services intended for minors.

17.228.920 General requirements.

A. Administrative permit.

Page 21 of 24 ends

1. An administrative permit is required to—

a. Establish a cannabis dispensary use located more than 600 feet from all sensitive uses;

b. Establish a cannabis production or cannabis testing use; or

c. Modify an existing cannabis dispensary, cannabis
production, or cannabis testing use previously authorized by an administrative permit.

2. Public notice.

a. The city, at least ten days before issuing a decision on an administrative permit under this article, shall—

i. Post notice of the application at the subject real
property; and

ii. Provide notice as set forth in subsection A.2.c.

b. The city shall provide notice of all final decisions on administrative permits authorized by this section as set forth in subsection A.2.c.

c. The notice required by subsections A.2.a and A.2.b must be given by mail or personal delivery to all owners of real property located within 600 feet of the real property that is the subject of the application, utilizing the owners' names and addresses shown on the latest county equalized assessment roll. In lieu of the equalized assessment roll, other records of the county assessor or tax collector that contain more recent information may be used.

B. Conditional use permit.

1. A conditional use permit approved by the planning and design commission is required to establish—

a. A cannabis dispensary within 600 feet of any sensitive use, as defined in section 17.228.910, excluding a school.

b. A cannabis consumption lounge.

2. Conditional use permits for cannabis uses are subject to the following:

Page 22 of 24 ends

The hearing before the city council is de novo.

C. Distance from sensitive uses.

1. Measuring distance. Under this article, the distance from a cannabis use to another use is the shortest distance measured in a straight line between the two closest property lines.

2. Distance from schools. No cannabis use, except a consumption lounge, may be established within 600 feet of a school.

4. Maps.

Page 23 of 24 ends

a. All applications under this article must include a scaled map that identifies by name, address, and assessor parcel number all sensitive uses within 600 feet of the project site.

b. Each applicant must attest in writing, under penalty of perjury, that the map and accompanying information is true and correct.

17.228.930 Cannabis production.

A. Power Inn area. No permit provided for in this title will be granted for cannabis cultivation in the area bounded by Power Inn Road to the west, Folsom Boulevard to the north, and the city limits to the east and south, if the total of all cannabis cultivation uses in that area will exceed 2.5 million square feet.

B. C-2 zone. In the C-2 zone, cannabis production must comply with the following provisions:

1. Cannabis distribution and nonvolatile cannabis manufacturing cannot exceed a total of 6,400 square feet per site.

2. Cannabis distribution cannot be the only cannabis production use on a site.

C. Signs. A cannabis production site cannot have more than one sign. The sign may be attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area.

17.228.940 Cannabis testing – signs.

A cannabis testing site cannot have more than one sign. The sign may be attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area.

17.228.950 Cannabis consumption lounges – location.

A cannabis consumption lounge may only be located within a building with a storefront cannabis dispensary.

17.228.960 Medical marijuana dispensaries.

Page 24 of 24 ends

City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00925 9/16/2025
Review An Ordinance Amending Various Provisions of Title 17 (Planning & Development Code) Relating to Cannabis Land Uses (M25-003)
File ID: 2025-00925
Location: Citywide
Recommendation: Review, comment and provide direction on an ordinance amending various provisions of Title 17 of the Sacramento City Code relating to cannabis land uses, including recommendations forwarded by the Planning and Design Commission.

Contact: Kirk Skierski, Senior Planner, (916) 808-7933, [email protected]; Kevin Colin, Zoning Administrator, (916) 808-5260, [email protected]; Department of Community Development
Presenter: Kevin Colin, Zoning Administrator, (916) 808-5260, [email protected]; Department of Community Development
Attachments:
1-Description/Analysis
2-Council Direction Points & Guide
3-April 8, 2025 Law & Legislation Committee Staff Report 4-Presentation
Description/Analysis
Issue Detail: On May 31, 2022, the City Council provided direction to staff for various policy and program changes after considering the findings of the 2022 Comprehensive Cannabis Study (https://www.cityofsacramento.gov/content/dam/portal/cdd/Planning/Major- Projects/title17cannabisamendments/EPS%20Comprehensive%20Cannabis%20Study.pdf). After completing a community engagement process and public hearings on amendments to Title 17 of the Sacramento City Code (Planning & Development Code), Community Development staff request direction from the City Council on three key components (discussed below). On the first two points, the Planning & Design Commission (“PDC”) and staff recommendations differ. A summary and guide for the first two points of direction is provided at Attachment 2. This request for direction was echoed by the Law & Legislation Committee on April 8, 2025 (Attachment 3). City Council direction is requested so that staff can return with a single ordinance for adoption.

Page 1 of 10 ends

File ID: 2025-00925 9/16/2025
I. Sensitive Uses: In May 2022, the City Council provided direction for staff to, “Consider limiting cannabis uses near sensitive uses such as schools, youth centers, drug and alcohol treatment centers, neighborhood and community parks, and faith-based institutions.” The city code’s current standards result in ~92% of land available to cannabis uses being within a sensitive use buffer, and 82% of existing dispensaries are located within at least one sensitive use buffer. City Council District #2 and #6 have the highest number of cannabis businesses and percentage of land outside of a sensitive use buffer. The topic of sensitive uses is of significant interest to the public and has drawn the greatest variety of perspectives.

Direction on this topic essentially affects cannabis dispensaries (storefront and delivery-only) and, in turn, consumption lounges. Regardless of the sensitive uses selected, Title 5 of Sacramento City Code ensures storefront dispensaries will remain: “veiled retail,” age-restricted, access controlled, guarded, and at 43 max citywide.
· Staff Recommendation: Change the sensitive use types and separation requirements for cannabis land uses as follows:
o For all cannabis land uses, maintain the existing mandatory 600-foot buffer from K-12 schools.
o For cannabis dispensaries and consumption lounges, require 600-foot buffer from the following sensitive uses:
§ Neighborhood, community and regional parks;
§ Community centers;
§ Libraries;
§ Museums;
§ Substance abuse rehabilitation centers; and
§ Youth-oriented facilities.
o Remove the ability to locate within a sensitive use buffer and, instead, prohibit locating within them.

The staff recommended sensitive uses result in:
o Prohibited buffers (i.e., no longer able to locate within sensitive use buffers with PDC approval);
o Within zoning districts allowing for cannabis land uses, 6,800 acres out of 10,100 acres are located outside of sensitive use buffers (i.e., where businesses could locate); o Reduced amount of land within zoning districts allowing cannabis uses - 3,300 fewer acres as available - when compared to PDC recommendation below; o Regulatory incentive for citywide distribution rather than current rules that channel cannabis to areas outside of sensitive uses (i.e., Council District #2 and #6); and o Sensitive uses that are clearly defined and easily verified; thereby, facilitating

Page 2 of 10 ends

File ID: 2025-00925 9/16/2025
predictable cannabis business locations.
· PDC Recommendation: Same sensitive uses as the staff recommendation but with the addition of:
o Childcare Centers;
o Church or faith congregation; and
o Other dispensary.

And allow cannabis uses to locate within these sensitive use buffers (except for K-12 schools) with a Conditional Use Permit (“CUP”) reviewed by the Planning and Design Commission. This contrasts with staff’s recommendation to completely prohibit cannabis uses within the list of sensitive use buffers stated above (under “staff recommendation.” Cannabis dispensary uses located outside a sensitive use buffer require a Conditional Use Permit reviewed by the Zoning Administrator (“ZA”). The additional sensitive uses were added in response to public comments at the commission’s March 13, 2025 meeting.

The Commission recommended additional sensitive uses result in:
o Within zoning districts allowing for cannabis uses, 10,100 acres available for cannabis uses (i.e., 3,300 acres more than staff recommendations); o Within zoning districts allowing for cannabis uses, 5,800 acres are within a sensitive use buffer (i.e., requiring PDC review);
§ Council District #4 and #5 have the highest percentage of land within sensitive use buffers (83% of land within zoning districts allowing cannabis uses is within a buffer);
o Within zoning districts allowing for cannabis uses, 4,300 acres are outside sensitive use buffers (i.e., requiring ZA review);
§ Council Districts #2 and #6 have 3,000 acres of the 4,300 acres located outside sensitive use buffers;
o Difficulty in verifying locations of childcare centers and churches through publicly available online resources; and
o A potential reduction of business competition between dispensaries with the 600- foot separation between storefronts (unless PDC grants a Conditional Use Permit for a lesser distance).
o Maintenance of status quo, where regulatory incentive remains for cannabis businesses (dispensaries, in particular) to locate in Council Districts #2 and #6. · Request for City Council Direction: Should the ordinance include sensitive uses consistent with the:
o Staff recommendation (i.e., prohibited buffers);
o Planning and Design Commission recommendation (i.e., conditional buffers); or o Another alternative?

Page 3 of 10 ends

File ID: 2025-00925 9/16/2025
If the City Council chooses the third option, staff request direction on the sensitive uses to include within the ordinance.

II. Permit Type: In May 2022, the City Council provided direction for staff to, “Review current cannabis business zoning to determine if they continue to serve the purposes for which they were adopted.”
Today, with narrow exceptions, cannabis businesses are subject to a Conditional Use Permit.

Conditional Use Permits are for land uses, “that are known to have a distinct impact on the area,” and which, “…are capable of creating special problems for bordering properties, unless given special attention.” The Comprehensive Cannabis Study documents that cannabis businesses have not resulted in unique impacts or problems, not increased crime, nor negatively affected property values.

Public discourse at hearings where cannabis Conditional Use Permit applications have been considered falls into two categories:
· (Opponents) cannabis should not be legal (i.e., despite the results of Proposition 64 in 2016 and City Council decision to allow and regulate locally) and/or the cannabis business will cause impacts on neighboring properties; and
· (Proponents) cannabis is subject to excessive regulation which inhibits repair to the harm caused by past racially discriminatory practices (i.e., the ‘War on Drugs’) and restricts access to a substance that is medicinal, not harmful.

Nearly all applications are approved without project-specific conditions of approval that relate to the location or business practices. This aligns with the Comprehensive Cannabis Study’s findings and further suggests a conditional use permit is not needed. · Staff Recommendation: Change the required permit from a Conditional Use Permit to an Administrative Permit for all cannabis land uses, except for cannabis consumption lounges.

The staff recommended permit type results in:
o Alignment of land use and permit type with the declared regulatory purpose; o Consistent and predictable enforcement of an important community standard (i.e., separation from sensitive land uses);
o Zero risk and reduced permit costs for businesses compliant with location standards (i.e., $500 to $1,200 applications fees; 1-2 month processing time); o Continued ability to impose conditions of approval for truly unique locations and/or business practices; and
o Continued public participation in application review through multiple methods and instances of public notice.

Staff recommend a Conditional Use Permit for consumption lounges because, although other jurisdictions have not encountered distinct impacts or special problems, the business is novel

Page 4 of 10 ends

File ID: 2025-00925 9/16/2025
with finite examples statewide. The 5-year pilot program authorized by City Council on November 19, 2024 will, after completing companion zoning amendments, provide useful data to evaluate permit requirements at a later date.
· PDC Recommendation: Require a Conditional Use Permit for cannabis cultivation, cannabis dispensary, and cannabis consumption lounge, and Administrative Permit for all remaining uses (manufacturing, distribution, testing).

The PDC recommended permit types result in:
o Continuation of status quo for cannabis cultivation and dispensary businesses, including:
§ Inconsistent and unpredictable enforcement of an important community standard (i.e., separation from sensitive land uses);
§ Continuation of risk, high permit costs ($7,000 to $14,000), processing times between at least 4 to 9 months - for businesses both compliant and non-compliant with sensitive use separation standards;
§ Continued ability to impose conditions of approval; and § Public discourse for cultivation and dispensary conditional use permit hearings will likely continue to focus on the merits of cannabis legalization and excessive regulatory practices for cannabis uses instead of the specific business location or business practices as intended by the CUP process.
· Request for City Council Direction: Should the ordinance include permit type(s) consistent with the:
o Staff recommendation;
o Planning and Design Commission recommendation; or
o Another alternative?
If the City Council chooses the third option, staff requests direction on the permit type for each cannabis land use to include within the ordinance.

III. Consumption Lounges at Dispensaries Within Sensitive Use Buffers: On April 8, 2025, the Law and Legislation Committee received multiple public comments concerning a legal nonconforming cannabis dispensary’s interest in participating in the Cannabis Consumption Lounge Pilot Program. The dispensary, A Therapeutic Alternative located at 3015 H Street, is, at minimum, located within the existing sensitive use buffers for K-12 schools, parks, childcare facility, churches, and residential zoning. The staff and PDC recommended sensitive uses will impose similar buffers; most notably a prohibition for cannabis consumption lounges located within 600 feet of a K-12 school.

Public comment included support for ‘A Therapeutic Alternative’ to participate in the Cannabis Consumption Lounge Pilot Program, including a support letter from the adjacent childcare facility.

Other public comment generally opposed allowing cannabis dispensary and consumption lounges

Page 5 of 10 ends

File ID: 2025-00925 9/16/2025
near schools, childcare, and other youth serving uses. The subject dispensary owner requested consideration of zoning regulations to allow a legal nonconforming dispensary to operate a cannabis consumption lounge within a sensitive use buffer. · Request for City Council Direction: Should the ordinance include zoning standards for existing legal nonconforming dispensaries that:
o Allow them to establish a cannabis consumption lounge within sensitive use buffers, including K-12 schools?
o If so, should the consumption lounge be:
§ Type 1 (Non-Smoking Consumption; Section 5.150.1360(B)(1) (https://codelibrary.amlegal.com/codes/sacramentoca/latest/sacramento_ca/0- § Type 2 (All Consumption; Section 5.150.1360(B)(2)
(https://codelibrary.amlegal.com/codes/sacramentoca/latest/sacramento_ca/0- Other Previous Points of Direction: In May 2022, the City Council provided direction for staff on five additional points related to zoning amendments. On these points, the staff and commission agree and, importantly, have not been of interest to participants in public meetings to date. Information on these points is available on the project website (https://www.cityofsacramento.gov/community- development/planning/major-projects/Title17CannabisAmendments), including all prior staff reports, meeting agendas and recordings, and mapping.

Policy Considerations: The following 2040 General Plan goals are applicable to the topic of City Code amendments for cannabis land uses:

Land Use Element
Goal LUP-2: Balanced and connected community with thriving neighborhoods and centers and development intensities linked to transit.

Goal LUP-5: Attractive, thriving commercial centers that are well-located to serve the needs of Sacramento residents, workers, and visitors.

Goal LUP-7: Industrial opportunities in suitable locations to provide employment for Sacramento residents and promote inclusive economic growth in the city.

Goal LUP-11: Create built and natural environments within the city that prioritize, support, promote,

Page 6 of 10 ends

File ID: 2025-00925 9/16/2025
and embrace social equity, ecological regeneration, responsible resource stewardship, and human health and well-being.

Economic Development Element
Goal E-1: A dynamic, resilient economy with a diverse array of business in established and emerging industry sectors.

Goal E-2: Sustained, inclusive growth that generates long-term, shared value in the community and creates economic opportunities for all residents.

Goal E-3: A business environment conducive to growth, investment, collaboration, and the exchange of ideas.

Environmental Justice
Goal EJ-5: Investments that address long-standing inequities, empower disadvantaged residents, and build neighborhood resilience.

Youth, Parks, Recreation, and Open Space Element
Goal YPRO-1: An integrated system of parks, open space areas, shared-use paths, and recreational facilities that are welcoming, well-maintained, safe, and accessible to all the diverse communities of Sacramento.

3.5 times the income of the industry during the first full year of legalization in 2018. · The cannabis industry is now among the top 10 employment sectors in the City, with approximately 8,000 workers, half of whom are estimated to be in the cultivation sector. · Cannabis operations generate a significant fiscal surplus ($19.8 million in 2021) to the City’s General Fund annually. Retail operations are the largest driver of fiscal surpluses, with an estimated surplus of $11.3 million attributable to retail cannabis operations in 2021. · Cannabis operations in the City are estimated to result in $2.2 billion in total economic output in the local economy, annually, inclusive of direct, indirect, and induced impacts. Of the $2.2 billion in activity (in 2021), $606.3 million will be retained by employees of local businesses in the form of income.

Page 7 of 10 ends

File ID: 2025-00925 9/16/2025
· Cannabis operations generated $1.5 billion in direct economic activity (in 2021), $357.1 million of which is income. The remaining $746.2 million of economic activity reflects the estimated indirect and induced impacts supported by cannabis operations as spending ripples through the local economy. This level of economic activity generates support for approximately 12,500 full- and part-time jobs in the region, including 8,000 direct, 2,600 indirect, and 1,800 induced jobs.
· Cannabis cultivation activities are estimated to generate $1.6 billion in economic activity annually, supporting 7,000 jobs, the greatest level of impact generated out of all cannabis business groups analyzed.
· Business operations taxes are the largest revenue source for cannabis operation in the City.

For the 2021/22 City budget, cannabis uses were anticipated to contribute approximately 73 percent of all business operations taxes generated in the City. · Revenues generated are significantly greater than the cost of operating the Office of Cannabis Management.
· 40% of local cannabis tax revenues are, pursuant to Measure L, to be spent on child and youth services. Tax revenue collected is placed into the Sacramento Children’s Fund and whose chief purpose is to support positive youth development and youth violence prevention programs - such as services for homeless youth and foster children; mental health counseling; substance-abuse treatment, prevention, and early intervention; and after-school activities - for children and youth less than 25 years old.
· The local cannabis tax revenue for fiscal year 2024 was $23,351,809 (40% = $9,340,724).

Based on the Council’s direction, additional analysis may be presented at a later date relative to land use regulation changes and potential economic impacts.

Environmental Considerations: This report concerns a request for review, discussion and direction.

No action (i.e., ordinance adoption) will occur that constitutes a “project” as defined by California Environmental Quality Act (CEQA) Guidelines sections 15378 and California Public Resources Code section 21080. CEQA review has been or will be performed in conjunction with and prior to the City Council taking action on an ordinance concerning amendments to Title 17 (Planning & Development Code) of the City Code.

Sustainability: None.

Page 8 of 10 ends

File ID: 2025-00925 9/16/2025
Management (“OCM”) to develop a pilot framework for cannabis social consumption lounges. · On May 21, 2024, the Law and Legislation Committee heard updates on the Title 17 Cannabis Amendments project and directed staff to bring back a package of policy recommendations for consideration.
· On May 21, 2024, OCM provided an informational update to the Law and Legislation Committee regarding a framework for consumption lounge business operating permits. The Committee provided direction to return with a framework to allow consumption business operating permits for all storefront dispensaries.
· On September 12, 2024, the Planning and Design Commission discussed preliminary recommendations of the Title 17 Cannabis Amendments Project and provided feedback to the proposed Title 17 cannabis amendments.
· On September 17, 2024, OCM presented a cannabis consumption business operating permit framework to the Law and Legislation Committee. The Committee forwarded the pilot program concept for social consumption to City Council for consideration but requested a City Council workshop soliciting the expertise of public health experts regarding cannabis consumption statewide public health trends prior to Council consideration of social consumption. · On October 22, 2024, the City Council heard presentations from public health experts discussing statewide public health trends and secondhand smoke in dispensaries. · On November 19, 2024, the City Council adopted an ordinance amending Title 5 concerning business regulations for cannabis consumption lounges.
· On March 13, 2025, the Planning and Design Commission passed a motion forwarding a recommendation of approval, as amended, to the City Council. See Attachment 2 for the March 13, 2025 staff report and ordinance.
· On April 8, 2025, the Law and Legislation Committee passed a motion forwarding the proposed cannabis ordinance and Planning and Design Commission recommendations to the City Council for discussion and direction. See Attachment 2 for the April 8, 2025 staff report.

Rationale for Recommendation: This discussion provides an opportunity for input and deliberation on how to proceed with Title 17 cannabis amendments in order to return with an ordinance responsive to Council’s direction.

Financial Considerations: Not applicable.

Page 9 of 10 ends

File ID: 2025-00925 9/16/2025
Local Business Enterprise (LBE): Not applicable.

Page 10 of 10 ends

Comprehensive
Cannabis Study
Why We’re Here

Does not:

Is:

Increase Crime - Reduce Property Values - Unique Impacts

Top 10 Employer - General Fund Surplus - $2.3 Bil/Year

What Business Where: Dispensaries

What Permit Type

?
Staff Recommendation
Admin Permit
All Types But Lounges
Mandatory 600’ Buffer
Public Notice
Ministerial Review
Reconsideration
Where = Type Zone Sensitive Use
Types: Consumption Lounge, Cultivation, Dispensary, Distribution, Manufacturing, T esting Zones: SC, C-1, C-2, C-3, C-4, M-1, M-1(s), M-2, M-2(s), M-T, & RMX Sensitive Uses - Staff
K-12 School
Youth Facility
Rehab Center
Community Center
Park
Library, Museum
Uses + Buffer Map
Outside Buffer Map
Sensitive Uses - PDC
Staff Recommendation

Church
Childcare Center
Other Dispensary
Uses + Buffer Map
ZA vs PDC Map
City Council Direction
Staff Uses or
PDC Uses or pick from below
K-12 School Library
Y outh Facility Museum
Rehab Center Church
Community Center Childcare Center
Other Dispensary Park
PDC Recommendation
Conditional Use Permit Admin Permit
Dispens, Cultiv, Lounge All Other T ypes
0 - 600 ft PDC Decision Mandatory Buffer
> 600 ft ZA Decision 600 ft
Public Notice Public Notice
Discretionary Review Ministerial Review
Appeal Reconsideration
City Council Direction
Admin Permit or
CUP or
Combination Of

Youth Exposure

Veiled Retail - 43 Storefronts Max - Children’s Fund

Street Centerline
Highways
� Arterial/Collector
Base Zone (Scenario 2)
-C-1
-C-2
1111 C-3
-C-4
-M-1
1111 M-IS
1111 M-2
1111 M-2S
1111 M-T
-RMX
1111 SC
Applicable Sensitive Uses
Substance Use Treatment Facilities
Community Park
Neighborhood Park
Regional Park
Community Centers
Libraries
Museums
Youth-Oriented Facilities
0 ½ 1 2 3
Map Date:
4 Miles
DISCLAIMER: All maps & data provided are
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Staff Recommendations - Parcels not in Proximity to Sensitive Use

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portal.cityofsacramento.org/opendata
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Miles
Street Centerlines
Highways
Arterial/Collector
Zoned Parcels Within
Within Sensitive Uses
Not Within Sensitive Uses
Childcare Center
Church or Faith Based
Congregation
Community Center
Community, Neighborhood, or
Regional Park
Library
Museum
Other Dispensary
School Grounds
Substance Abuse Rehabilitation
Center
Youth-Oriented Facility
Sensitive Uses
City of Sacramento
Law and Legislation Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00684 4/8/2025 Item 4.

An Ordinance Amending Various Provisions of Title 17 Relating to Cannabis Land Uses (M25- 003)
File ID: 2025-00684
Location: Citywide
Recommendation: 1) Review an ordinance amending various provisions of Title 17 of the Sacramento City Code, relating to cannabis land uses; and 2) pass a Motion forwarding the ordinance to City Council for consideration.

Contact: Kirk Skierski, Senior Planner, (916) 808-7933, [email protected]; Kevin Colin, Zoning Administrator, (916) 808-5260, [email protected]; Department of Community Development
Presenter: Kirk Skierski, Senior Planner, (916) 808-7933, [email protected]; Kevin Colin, Zoning Administrator, (916) 808-5260, [email protected]; Department of Community Development
Attachments:
1-Description/Analysis
2-March 13, 2025 Planning and Design Commission Staff Report 3-Planning and Design Commission Meeting Summary
Description/Analysis
Issue Detail: On March 13, 2025, staff presented to the Planning and Design Commission an ordinance that proposes comprehensive and substantive changes to how cannabis land uses are regulated. The ordinance and accompanying staff report are at Attachment 2. The ordinance is the culmination of a process begun after completion of a Comprehensive Cannabis Study in 2022 and guided by City Council policy direction provided on May 31, 2022.

As reflected in the summary at Attachment 3, the Commission agreed in part with the staff recommendation. Each point of City Council direction is provided below along with a summary of both the staff and Commission recommendations.

Council Point of Direction #1: Review current cannabis business zoning to determine if they

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File ID: 2025-00684 4/8/2025 Item 4.
continue to serve the purposes for which they were adopted.

Staff Recommendation: Change the required permit from a Conditional Use Permit to an Administrative Permit for all cannabis land uses, except for cannabis consumption lounges.

PDC Recommendation
: Change the required permit from a Conditional Use Permit to an Administrative Permit for all cannabis land uses, except for cannabis cultivation, cannabis dispensary, and cannabis consumption lounge.

Council Point of Direction #2: Consider additional zones for storefront and delivery-only dispensaries and consider storefront dispensaries as an allowed use in RMX and C-3 zones.

Staff Recommendation
: Add the RMX, C-1, and C-3 to the zones allowing storefront dispensaries. No additional zones are recommended for delivery-only dispensaries.

PDC Recommendation
: Same as staff recommendation.

Council Point of Direction #3: Consider additional zones for non-volatile manufacturing (including infusion and packaging).

Staff Recommendation
: No additional zones are recommended for non-volatile manufacturing.

PDC Recommendation: Same as staff recommendation.

Council Point of Direction #4: Consider limiting cannabis uses near sensitive uses such as schools, youth centers, drug and alcohol treatment centers, neighborhood and community parks, and faith-based institutions.

Staff Recommendation: Change the sensitive use types and separation requirements for cannabis land uses as follows:
· For all cannabis land uses, require a buffer for K-12 schools of 600 feet. · For cannabis dispensaries and consumption lounges, require 600-foot buffer from the following sensitive uses:
o Neighborhood, community and regional parks;
o Community centers;
o Libraries;
o Museums;
o Substance abuse rehabilitation centers; and
o Youth-oriented facilities.
· Remove the ability to locate within a sensitive use buffer and, instead, prohibit locating

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File ID: 2025-00684 4/8/2025 Item 4.
within the buffer.

PDC Recommendation: Change the sensitive use types and separation requirements for cannabis land uses as follows:
· For all cannabis land uses, require a buffer for K-12 schools of 600 feet (same as staff). · For cannabis dispensaries and cannabis consumption lounges, require 600-foot buffer from the following sensitive uses:
o Neighborhood, community and regional parks
o Community centers
o Libraries
o Museums
o Substance abuse rehabilitation centers
o Youth-oriented facilities
o Childcare Centers (added by Commission)
o Church or faith congregation (added by Commission)
o Other dispensary (added by Commission)
However, allow the ability to locate within these sensitive use buffer (except for K-12 schools) with a Conditional Use Permit reviewed by the Planning and Design Commission, as authorized by existing regulations (different from staff).

Council Point of Direction #5: Consider reviewing suitability of mixed light cannabis uses in industrial/manufacturing zones.

Staff Recommendation
: No amendments are recommended.

PDC Recommendation: Same as staff recommendation.

Council Point of Direction #6: Consider a zoning and permit type for cannabis research and development (R&D) facilities.

Staff Recommendation
: Amend the existing “cannabis testing” definition to include cannabis

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File ID: 2025-00684 4/8/2025 Item 4.
research and development uses.

PDC Recommendation: Same as staff recommendation.

Council Point of Direction #7: Consider removing distribution from the current uses subject to a district-based square-footage cap.

Staff Recommendation
: Remove cannabis distribution from the district based square footage cap.

PDC Recommendation
: Same as staff recommendation.

Staff is seeking direction relating to the ordinance amending various portions of Title 17 relating to cannabis land uses. Options for consideration are as follows:

1. Proceed to the City Council with the ordinance staff recommended to Planning and Design Commission; or

2. Proceed to the City Council with an ordinance that includes the Planning & Design Commission’s recommendations; or

3. Return to the Law and Legislation Committee with an ordinance reflecting other direction from the Law and Legislation Committee received during the April 8, 2025 meeting.

Policy Considerations: The following 2040 General Plan goals are applicable to the topic of City Code amendments for cannabis land uses:

Land Use Element
Goal LUP-2: Balanced and connected community with thriving neighborhoods and centers and development intensities linked to transit.

Goal LUP-5: Attractive, thriving commercial centers that are well-located to serve the needs of Sacramento residents, workers, and visitors.

Goal LUP-7: Industrial opportunities in suitable locations to provide employment for Sacramento residents and promote inclusive economic growth in the city.

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File ID: 2025-00684 4/8/2025 Item 4.

Economic Development Element
Goal E-1: A dynamic, resilient economy with a diverse array of business in established and emerging industry sectors.

Goal E-2: Sustained, inclusive growth that generates long-term, shared value in the community and creates economic opportunities for all residents.

Goal E-3: A business environment conducive to growth, investment, collaboration, and the exchange of ideas.

Environmental Justice
Goal EJ-5: Investments that address long-standing inequities, empower disadvantaged residents, and build neighborhood resilience.

Economic Impacts: Not applicable.

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File ID: 2025-00684 4/8/2025 Item 4.
only in storefront cannabis dispensaries, which is an existing authorized use, and only with approval of a conditional use permit, which is a discretionary entitlement in which environmental review will be undertaken during the permit process. Nonetheless, the addition of a consumption lounge within a storefront cannabis dispensary will not result in a significant effect on the environment. The proposed ordinance also refines the existing code’s separation requirements of all cannabis land uses from other ‘sensitive’ land uses (e.g., parks, libraries, community centers, youth-oriented facilities) and refines the definitions of some of these uses.

Sustainability: The proposed ordinance includes amendments that help to make zoning standards easier to understand and implement. This will help facilitate development in the City in a manner consistent with existing policy, including that relating to sustainability.

Commission/Committee Action: The following actions were taken to initiate the proposed cannabis amendments to Title 17 of the City Code:
· On May 31, 2022, the City Council directed staff to evaluate seven points of direction relating to cannabis zoning regulations and return with recommended cannabis zoning amendments. · On September 19, 2023, the Law and Legislation Committee directed Office of Cannabis Management (“OCM”) to develop a pilot framework for cannabis social consumption lounges. · On May 21, 2024, the Law and Legislation Committee heard updates on the Title 17 Cannabis Amendments project and directed staff to bring back a package of policy recommendations for consideration.
· On May 21, 2024, OCM provided an informational update to the Law and Legislation Committee regarding a framework for consumption lounge business operating permits. The Committee provided direction to return with a framework to allow consumption business operating permits for all storefront dispensaries.
· On September 12, 2024, the Planning and Design Commission discussed preliminary recommendations of the Title 17 Cannabis Amendments Project and provided feedback to the proposed Title 17 cannabis amendments.
· On September 17, 2024, OCM presented a cannabis consumption business operating permit framework to the Law and Legislation Committee. The Committee forwarded the pilot program concept for social consumption to City Council for consideration but requested a City Council workshop soliciting the expertise of public health experts regarding cannabis consumption statewide public health trends prior to Council consideration of social consumption. · On October 22, 2024, the City Council heard presentations from public health experts

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File ID: 2025-00684 4/8/2025 Item 4.
discussing statewide public health trends and secondhand smoke in dispensaries. · On November 19, 2024, the City Council adopted an ordinance amending Title 5 concerning business regulations for cannabis consumption lounges.
· On March 13, 2025, the Planning and Design Commission passed a motion forwarding a recommendation of approval, as amended, to the City Council. See Attachment 2 for the March 13, 2025 staff report and ordinance.

Rationale for Recommendation: This discussion provides an opportunity for input and direction on how the Committee would like to proceed with the City Council’s direction on cannabis land use regulations and Planning and Design Commission recommendations.

Financial Considerations: Not applicable.

Local Business Enterprise (LBE): Not applicable.

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City of Sacramento
Planning and Design Commission Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00630 3/13/2025 Public Hearing Item 3.

Title 17 Cannabis Code Amendments Project: An Ordinance Amending Various Provisions of Title 17 Relating to Cannabis Land Uses (M25-003) [Noticed on 02/21/2025] File ID: 2025-00630
Location: Citywide
Recommendation: Conduct a public hearing and upon conclusion, pass a Motion recommending that the City Council approve: 1) a determination that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15061(b)(3); and 2) an Ordinance amending various portions of Title 17 of the Sacramento City Code, related to cannabis land uses.

Contact: Kirk Skierski, Senior Planner, (916) 808-7933, [email protected]; Kevin Colin, Zoning Administrator, (916) 808-5260, [email protected]; Department of Community Development
Presenter: Kirk Skierski, Senior Planner, (916) 808-7933, [email protected]; Kevin Colin, Zoning Administrator, (916) 808-5260, [email protected]; Department of Community Development
Attachments:
1-Description/Analysis
2-Background and Ordinance Summary
3-Community Engagement Summary
4-Planning and Design Commission Feedback and Staff Response 5-Ordinance (clean)
6-Ordinance (redline)
7-Sacramento Comprehensive Cannabis Study dated March 8, 2022 Description/Analysis
Issue Detail: Staff has prepared an ordinance that makes comprehensive and substantive changes to how cannabis land uses are regulated by the Planning and Development Code (Title 17 of the City Code). The ordinance is the culmination of a process begun after completion of a Comprehensive Cannabis Study in 2022. Staff approached the work with the following guiding principles:

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File ID: 2025-00630 3/13/2025 Public Hearing Item 3.

1. Support an informed debate on a polarizing topic by grounding all recommendations with a robust data-driven analysis.

2. Ensure the regulations are equitable, fair, and balance conflicting cultural values.

3. Provide practicable standards that are clear and enable compliance to be easily and consistently verified.

While working on an ordinance responsive to the City Council’s direction on the Comprehensive Cannabis Study, a parallel policy discussion emerged on the topic of cannabis consumption lounges.

In November 2024, discussion led to the adoption of amendments to Title 5 (Business Licenses and Regulations) of the City Code. The ordinance enclosed with this staff report includes further amendments to the City Code specific to Title 17 (Planning and Development Code).

Council Policy Direction & Final Recommendations
On May 31, 2022, the City Council directed staff to evaluate seven points of policy direction on cannabis zoning regulations and return with proposed code amendments. After thorough analysis of each point of direction and a community engagement process, staff recommend the following:

Council Point of Direction #1: Review current cannabis business zoning to determine if they continue to serve the purposes for which they were adopted.

Recommendation
: Change the required permit from a Conditional Use Permit to an Administrative Permit for all cannabis land uses, except for cannabis consumption lounges addressed separately below.

Council Point of Direction #2: Consider additional zones for storefront and delivery-only dispensaries and consider storefront dispensaries as an allowed use in RMX and C-3 zones.

Recommendation: Add the RMX, C-1, and C-3 to the zones allowing storefront dispensaries.

No additional zones are recommended for delivery-only dispensaries.

Council Point of Direction #3: Consider additional zones for non-volatile manufacturing (including infusion and packaging).

Recommendation
: No additional zones are recommended for non-volatile manufacturing.

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File ID: 2025-00630 3/13/2025 Public Hearing Item 3.

Recommendation: Change the sensitive use types and separation requirements for cannabis land uses as follows:
· For all cannabis land uses, require a buffer for K-12 schools. · For all cannabis land uses, require a buffer distance of 600 feet. · For cannabis storefront and delivery-only dispensaries (and cannabis consumption lounges - discussed below), require buffer from the following sensitive uses:
o Neighborhood, community and regional parks;
o Community centers;
o Libraries;
o Museums;
o Substance abuse rehabilitation centers; and
o Youth-oriented facilities.
· Remove the ability to locate within a sensitive use buffer and, instead, make compliance mandatory.

Cannabis land uses provided for in Title 17 of the City Code, as amended, include the following: cannabis production, cannabis testing, cannabis dispensary, and cannabis consumption lounge.

Council Point of Direction #5: Consider reviewing suitability of mixed light cannabis uses in industrial/manufacturing zones.

Recommendation: No amendments are recommended.

Council Point of Direction #6: Consider a zoning and permit type for cannabis research and development (R&D) facilities.

Recommendation: Amend the existing “cannabis testing” definition to include cannabis research and development uses.

Council Point of Direction #7: Consider removing distribution from the current uses subject to a district-based square-footage cap.

Recommendation: Remove cannabis distribution from the district based square footage cap.

See Attachment #2 (Background and Ordinance Summary) for a detailed analysis of each point of policy direction. This attachment also provides further analysis of important aspects of the proposed

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File ID: 2025-00630 3/13/2025 Public Hearing Item 3.
ordinance not specifically related to the City Council points of direction addressed above such as public notice, redress through reconsideration, prior conditional use permits, and non-conforming use regulations.

See Attachment #3 (Community Engagement Summary) for information on the project’s engagement activities and an overview of community feedback received.

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 provides business operating requirements for cannabis consumption lounges including:
· A cannabis lounge must be connected to a permitted storefront dispensary; · Business permit types: Type 1 (non-smoking: other than smoking and vaping) and Type 2 (all consumption: edibles, smoking, and vaping);
· Maximum cannabis lounge size of 1,500 square feet or 50% of total area of the storefront dispensary;
· Cannabis consumption lounge must be separated from all other areas of storefront dispensary by solid walls and doors;
· Interior must not be visible from the public right-of-way, non-age restricted areas, and unsecured areas surrounding the building, or main entrance and lobby; · Type 2 (all consumption: edibles, smoking and vaping) must be indoors, fully enclosed, soundproofed, have negative pressure (i.e., to limit smoke leakage), non-recirculating and high rate of air exchange HVAC system, and odor prevention; · Signage requirements for age, smoking-allowed (for Type 2), health warnings, parking and good neighborhood statements;
· Operating hours are between 7:00 AM and 11:00 PM;
· Age restriction of 21 years or older;
· Education and training requirements for managers, employees, and volunteers; · A community-relations employee including their name and contact information provided

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File ID: 2025-00630 3/13/2025 Public Hearing Item 3.
by certified mail for all neighboring properties within 100 feet; · Manager presence in lounge is required whenever a customer is present; · Customer conduct requirements including information about ridesharing or ride-hailing services; and
· Repeal of all regulations on January 1, 2030.

In addition to enacting these regulations, the City Council also directed staff to return with an ordinance addressing equitable distribution of consumption lounges across council districts, as well as the ability for councilmember call-up review of permit approvals for cannabis consumption lounges.

To allow cannabis consumption lounges to locate in the city, additional amendments to Title 17 of the City Code are necessary. The enclosed ordinance includes amendments for cannabis consumption lounges including two main parts: (1) a land use entitlement process; and (2) standards for where they can locate. The enclosed ordinance includes the following staff recommendations for zoning requirements:
· Allow cannabis consumption lounges in all zoning districts where cannabis storefront dispensaries are allowed;
o Cannabis consumption lounges must be within a storefront dispensary pursuant to State law.
· Require Conditional Use Permit review and approval by the Planning and Design Commission;
· As requested by City Council, provide for City Councilmember call up of all approved Conditional Use Permits; and
· A mandatory 600-foot sensitive use buffer for the same sensitive uses as applicable to dispensaries.

Planning and Design Commission’s Role
Pursuant to Section 17.916.010, all amendments to Title 17 require review by the Planning & Design Commission prior to City Council consideration. When considering and acting upon proposed amendments, the Commission is to consider two findings:

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File ID: 2025-00630 3/13/2025 Public Hearing Item 3.

1. As amended, this title complements, supports, and facilitates the implementation of the goals, policies, and other provisions of the general plan and the City’s specific plans and transit village plans; and

2. The amendment promotes the public health, safety, convenience, and welfare of the City.

On September 12, 2024, the Planning and Design Commission discussed preliminary recommendations of the Title 17 Cannabis Amendments Project and provided feedback to the proposed Title 17 cannabis amendments. See Attachment #4 (Planning and Design Commission Feedback and Staff Response) for a summary of previous commission feedback and staff responses.

Policy Considerations: The following 2040 General Plan goals are applicable to the topic of City Code amendments for cannabis land uses:

Land Use Element
Goal LUP-2: Balanced and connected community with thriving neighborhoods and centers and development intensities linked to transit.

Goal LUP-5: Attractive, thriving commercial centers that are well-located to serve the needs of Sacramento residents, workers, and visitors.

Goal LUP-7: Industrial opportunities in suitable locations to provide employment for Sacramento residents and promote inclusive economic growth in the city.

Staff Analysis: Orderly and well-planned development cannot be easily achieved without well-defined and clear regulations. The ordinance provides for clear standards that, on balance, align with community values and result in clear expectations of where cannabis uses can or cannot locate. In doing so, the ordinance provides for additional opportunities for retail cannabis uses to locate in commercial and mixed-use residential zones fostering connected neighborhoods and commercial centers, and open areas outside of high concentration areas (i.e., industrial zones).

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File ID: 2025-00630 3/13/2025 Public Hearing Item 3.

Economic Development Element
Goal E-1: A dynamic, resilient economy with a diverse array of business in established and emerging industry sectors.

Goal E-2: Sustained, inclusive growth that generates long-term, shared value in the community and creates economic opportunities for all residents.

Goal E-3: A business environment conducive to growth, investment, collaboration, and the exchange of ideas.

Staff Analysis: In addition to the reasons stated in the staff analysis above, the addition of the RMX, C-1, and C-3 zones creates economic development opportunities by including entertainment and tourism hubs, commercial centers, and areas with the greatest diversity of land uses and which are accessible by multiple modes of transportation.

Environmental Justice
Goal EJ-5: Investments that address long-standing inequities, empower disadvantaged residents, and build neighborhood resilience.

Staff Analysis: The ordinance provides a streamlined permitting process for cannabis land uses in line with the known land use impacts resulting from cannabis uses and reduces a regulatory “hurdle” for cannabis businesses. Excessive regulation inhibits repair to the harm caused by past racially discriminatory practices (e.g., the ‘War on Drugs’).

Staff Analysis: The ordinance includes mandatory separation requirements for parks to support maintaining recreational facilities that are safe and accessible to all.

Economic Impacts: Not applicable.

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File ID: 2025-00630 3/13/2025 Public Hearing Item 3.

It can be seen with certainty that there is no possibility that the proposed ordinance may have a significant effect on the environment. The proposed ordinance modifies the permit -processing rules for cannabis production, testing, and dispensaries, all of which are currently authorized under the city code with a conditional use permit. The proposed ordinance authorizes these uses by right in various zones (including the addition of the Residential Mixed Use (RMX), Limited Commercial Zone (C-1), and Central Business Zone (C-3), based on the conclusions in the 2022 Comprehensive Cannabis study, which determined that these uses have no impacts on the surrounding areas. The proposed ordinance also authorizes a new land use - cannabis consumption lounge - but this use is allowed only in storefront cannabis dispensaries, which is an existing authorized use, and only with approval of a conditional use permit, which is a discretionary entitlement in which environmental review will be undertaken during the permit process. Nonetheless, the addition of a consumption lounge within a storefront cannabis dispensary will not result in a significant effect on the environment. The proposed ordinance also refines the existing code’s separation requirements of all cannabis land uses from other ‘sensitive’ land uses (e.g., parks, libraries, community centers, youth-oriented facilities) and refines the definitions of some of these uses.

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File ID: 2025-00630 3/13/2025 Public Hearing Item 3.
recommendations of the Title 17 Cannabis Amendments Project and provided feedback to the proposed Title 17 cannabis amendments. See Attachment #4 (Planning and Design Commission Feedback and Staff Response) for a summary of previous commission feedback and staff responses.
· On September 17, 2024, OCM presented a cannabis consumption business operating permit framework to the Law and Legislation Committee. The Committee forwarded the pilot program concept for social consumption to City Council for consideration but requested a City Council workshop soliciting the expertise of public health experts regarding cannabis consumption statewide public health trends prior to Council consideration of social consumption.
· On October 22, 2024, the City Council heard presentations from public health experts discussing statewide public health trends and secondhand smoke in dispensaries. · On November 19, 2024, the City Council adopted an ordinance amending Title 5 concerning business regulations for cannabis consumption lounges.

After the Planning and Design Commission’s review of the ordinance on March 13, 2025, the ordinance is anticipated to be considered by the Law and Legislation Committee at their regular meeting of April 8, 2025.

Rationale for Recommendation: Staff recommends the Planning & Design Commission pass a motion forwarding a recommendation of approval to the City Council. The amendments contained in the proposed ordinance help to refine the City’s Planning and Development Code cannabis regulations by providing practicable regulations that, on balance, are aligned with community values and make implementation easier and more streamlined, which supports several goals and policies of the General Plan.

Financial Considerations: Not applicable.

Local Business Enterprise (LBE): Not applicable.

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Attachment 2
Background & Ordinance Summary
This attachment provides a narrative description of the proposed ordinance included with Attachment #3 and Attachment #4 and is organized as follows:

Major topic City Council points of policy direction and substantive ordinance provisions relating to
community feedback and/or a new policy decision.

Issues Points of research and analysis related to the City Council policy direction or observations about the
present regulation’s outcomes.

Existing Regulations A summary of the existing regulations for the applicable topic being addressed.

Preliminary Recommendation Staffs recommended regulatory changes before conducting community outreach.

Community Feedback A summary of responses by community members to each City Council point of policy direction and
staff’s preliminary recommendation.

Final Recommendation Staffs final recommendation after considering community member feedback and performing
additional analysis.

Staff Rationale An explanation of the reasoning behind staff’s final recommendation.

Where relevant, this attachment includes references to maps by denoting “ click here for map.” This denotes a hyperlink to the City’s website that will bring readers to the relevant page containing the map. These maps are also provided at the end of this attachment.

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Council Point of Direction #1: Review current cannabis business zoning to determine if they continue to serve the purpose for which they were adopted.

Issues
 Nearly all cannabis land uses require a discretionary Conditional Use Permit which, by declared regulatory purpose, is for land uses, “that are known to have a distinct impact on the area,” and which, “…are capable of creating special problems for bordering properties, unless given special attention.”
 The 2022 Comprehensive Cannabis Study demonstrates that cannabis land uses do not cause a negative impact on nearby retail or industrial uses, have no negative impact on nearby home values, and that dispensaries do not create increases in crime beyond levels generated by other businesses.
 Public hearings for Conditional Use Permit applications are a zero-sum game. o Prospective business owners assume substantial monetary risk to eventually arrive at a public hearing with discourse not about the merits of their specific location or business practices but rather a general opposition to cannabis. o Concerned neighbors confront codified land use separation requirements that are not met and an abundance of worry, information, and bureaucracy. o In the end, virtually all conditional use permits are approved with non-unique conditions of approval that restate standard state and local requirements.

Existing Regulations

Existing Land Use Permit Requirements for Cannabis Businesses Dispensary Cultivation Distribution Nonvolatile
Manufacturing
Volatile
Manufacturing Testing
By-Right/No
Permit 1 2
Ministerial
Permit
Discretionary
Permit 3
(1) Type-S and Type-T distribution licenses allowed by-right. (2) Packaging, labeling, and infusion uses only. (3) Nonvolatile extraction.

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Preliminary Recommendation

Recommended Land Use Permit Requirements for Cannabis Businesses Dispensary Cultivation Distribution Nonvolatile
Manufacturing
Volatile
Manufacturing Testing
By-Right/No
Permit

Ministerial
Permit
Discretionary
Permit

Community Feedback
 Many community members expressed support for the preliminary recommendation above. Others expressed opposition to the overall project (i.e., any Title 17 cannabis amendments) and an interest either maintaining the status quo or further restricting cannabis businesses.
 Some comments suggested maintaining a discretionary permit for cannabis cultivation uses to address security and odor concerns.  A couple of speakers expressed an interest in being notified and involved in the decision on cannabis permits.

Final Recommendation
No changes to preliminary recommendation.

Staff Rationale
 The permit type change to ministerial permit (i.e., Administrative Permit) aligns with the known and documented impacts of the land use.
 Administrative Permits are approved after verification of compliance with adopted standards (e.g., separation from other land uses).
 Administrative Permits may include project-specific conditions of approval to address rare instances of a unique location and/or business practice.  Title 5 and 17 of the City Code have duplicative regulations for security and odor

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control, which make enforcement both more difficult and less adaptable over time.

Using only Title 5 of the City Code for security and odor control will result in a single set of clear requirements that are reviewed annually unlike Title 17 permits which are fixed at the time of approval.
 For prospective business owners, the move to Administrative Permits:
o Removes all risk to those applicants who perform simple due diligence to ensure compliance with adopted standards.
o Reduces the land use permit process timeframe from 4-9 months to 1-2 months.  For concerned community members, the move to Administrative Permits results in:
o Predictable outcomes in terms of the location of future, new cannabis businesses.
o Mandatory separation distances from specified ‘sensitive’ land uses (e.g., schools, youth-oriented facilities, parks).
o An opportunity to participate in the verification of specified ‘sensitive’ land uses through public notice and a reconsideration process.

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Council Point of Direction #2: Consider additional zones for dispensaries and consider storefront dispensaries as an allowed use in the RMX and C- 3 zones.

Issues
 Of the zoning districts allowing dispensary uses today, industrial zones make up more than double the land area as compared to commercial zones.  Council Districts 2 and 6 have the most land area with industrial zones and most the city’s cannabis dispensaries.
 Current regulations incentivize dispensaries to locate in industrial areas since they typically are removed from sensitive uses (e.g., schools, youth-oriented facilities) and, thus, have a cheaper and faster application review process.  About half of the city’s dispensaries are in industrial areas and further than a ½ mile from public transit.
 Analysis of citywide storefront dispensaries suggest that the central city is highly desirable for storefront dispensaries as it has approximately 10% of available land that allows dispensaries yet accounts for 30% of citywide storefront dispensaries.

Existing Regulations
Cannabis dispensaries are allowed in the following zoning districts.  Storefront Dispensary: Shopping Center Zone (SC)
General Commercial Zone (C-2)
Heavy Commercial Zone (C-4)
Light Industrial Zone (M-1)
Light Industrial Zone (M-1(S))
Heavy Industrial Zone (M-2)
Heavy Industrial Zone (M-2(S))
Industrial and Transit-Area Zone (M-T)
Click here for Map-1. Existing Storefront Dispensary Zoning Map  Delivery-Only Dispensary: All the same zones excluding the SC zone.

Click here for Map-2. Existing Delivery-Only Dispensary Zoning Map Preliminary Recommendation
For storefront dispensaries, allow in the following additional zoning districts:
 Residential Mixed Use Zone (RMX)

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 Limited Commercial Zone (C-1)
 Central Business District Zone (C-3)
Click here for Map-3. RMX, C-1, and C-3 Zoning Map
Click here for Map-4. Current and Recommended Storefront Dispensary Zoning Map
 For delivery-only dispensaries, make no changes to zoning districts where they are allowed.

Community Feedback
 Support was voiced for allowing dispensaries to locate in the RMX, C-1, and C-3 zones.
 Some opposition was expressed for any amendments to Title 17 cannabis regulations (i.e., maintain status quo).
 A few speakers opposed allowing dispensaries near residential uses (i.e., RMX and C-1 zones).

Final Recommendation
No changes to preliminary recommendation.

Staff Rationale
 The 2022 Comprehensive Cannabis Study states storefront dispensaries are retail ‘brick and mortar’ business like other retail land uses, that they integrate well into a variety of retail environments and are compatible with other commercial and residential uses.
 The C-3 zone is confined to the Central City planning area – an urban setting with the greatest diversity of land uses and most opportunities for non-vehicular mobility (e.g., walking, biking, public transit) – all of which supports retail land uses (i.e., storefront dispensaries).
 As of the third quarter of 2024, 39.2% of retail storefront space in the downtown area alone (i.e., a subset of the Central City planning area) was vacant. Allowing dispensaries in the C-3 zone creates an economic development opportunity.  The RMX zone is present in the Central City planning area and at other urban nodes throughout the city. Storefront dispensaries will integrate well into these locations for reasons like the C-3 zone’s inclusion.

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 The C-1 zone makes up a small percentage of the City’s commercial zones and is evenly dispersed throughout the city in residential neighborhoods. C-1 zones would allow for smaller neighborhood serving dispensaries due to C-1 parcel characteristics (i.e., smaller in size compared to other commercial zones). Storefront dispensaries have shown successful integration into residential areas (i.e., Midtown, Central City).
 Adding the RMX, C-1 and C-3 zones along with changes to specified ‘sensitive’ land uses (discussed below) will increase opportunities for existing and new storefront dispensaries to locate throughout the city and outside of high concentration areas (i.e., Council District 2 and 6).

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City Council Point of Direction #3: Consider additional zones for nonvolatile manufacturing including infusion and packaging.

Issues
 Current zoning regulations require discretionary approval (e.g., Conditional Use Permit) for nonvolatile extraction except when consisting of only infusion and packaging.
 The 2022 Comprehensive Cannabis Study found that:
o Since 2018, cannabis manufacturing was the second-largest cannabis business sector and provides for the highest opportunities for growth due to its ability to integrate into other cannabis business sectors (i.e., cultivation and distribution); and
o Cannabis manufacturing has the second largest economic impact of all cannabis business sectors.
 Production of concentrates and infused foods and beverages has become more sophisticated over the years. However, cannabis product manufacturing is highly unpredictable in terms of consumer demand preferences.
 Are current Title 17 cannabis regulations sufficient to support the cannabis manufacturing industry?
Existing Regulations
 Existing Title 17 Cannabis Manufacturing Zoning – Where Allowed:

General Commercial Zone (C-2)
Heavy Commercial Zone (C-4)
Light Industrial Zone (M-1)
Light Industrial Zone (M-1(S))
Heavy Industrial Zone (M-2)
Heavy Industrial Zone (M-2(S))
Manufacturing-Industrial Park Zone (MIP)
Manufacturing, Research and Development Zone (MRD)
Industrial and Transit-Area Zone (M-T)
Click here for Map-5. Existing Cannabis Manufacturing Zoning Map  Existing Title 17 Permit Requirements – Nonvolatile Manufacturing o By-Right/No Permit: Infusion and packaging
o Conditional Use Permit: Nonvolatile extraction

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Preliminary Recommendation
 No additional zones were recommended to allow nonvolatile cannabis manufacturing.
 Recommendations at City Council Point of Direction #1 would permit nonvolatile manufacturing (infusion, packaging, and extraction) with Administrative Permit approval, which provides a lower regulatory barrier through reduced permit costs and processing timeframes furthering support for the manufacturing industry.

Community Feedback
There was no feedback specific to additional zones for nonvolatile manufacturing.

Final Recommendation
No changes to preliminary recommendation.

Staff Rationale
 Nonvolatile cannabis manufacturing is currently allowed in all industrial zones as well as general and heavy commercial zones.
 Due to characteristics of cannabis manufacturing business operations, businesses naturally concentrate in industrial zoning districts where they are already allowed.  93% of existing cannabis manufacturing businesses are in industrial zones, and 7% are in commercial zones (i.e., C-2 or C-4). There appears to be ample land area in these zones to accommodate this cannabis business sector.  Of the zoning districts that would further this point of policy direction, all are commercial (i.e., OB, EC, SC, C-1, and C-3) and allow land uses that are primarily retail commercial, service commercial, and office. They also either prohibit or limit manufacturing floor area.
 Expanding the areas where nonvolatile cannabis manufacturing may locate appears unnecessary and, of the existing zoning districts that might accommodate such a change, all are oriented to non-residential land uses dissimilar to manufacturing.

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Council Point of Direction #4: Consider limiting cannabis sensitive uses to schools, youth-oriented facilities, substance abuse rehabilitation centers, faith-based institutions, and neighborhood and community parks.

Issues
 Current zoning regulations include a 600-foot sensitive use buffer for cannabis businesses from specified sensitive uses; however, except for K-12 schools, all these buffers can be reduced with Planning and Design Commission approval.  Current sensitive use buffer standards result in approximately 92% of land zoned for cannabis uses to be within a sensitive use buffer.
 Most existing cannabis dispensaries (i.e., 82%) currently operate within at least one sensitive use buffer.
 There are no studies or empirical data to suggest what land uses constitute a “sensitive use.” Instead, these uses are entirely derived from local cultural preferences and values.
 State cannabis regulations include 600-foot sensitive use buffers for K-12 schools, daycare centers, and youth centers. Local governments, however, may have the same or different sensitive uses and buffer distances.
 Most local governments that allow cannabis business types (including the City of Sacramento) have sensitive uses and buffers that differ from the State’s.

Existing Regulations
 Existing sensitive uses are identified by the cannabis land use type in the table below.
 Cannabis land uses have a 600-foot buffer from all sensitive uses (except for residential zoning districts).
 Cannabis Dispensaries have a 300-foot buffer from residential zoning districts.  All cannabis land uses may locate within a buffer with Conditional Use Permit approval by the Planning and Design Commission, except for a 600-foot buffer from K-12 schools which is mandatory.

Click here for Map-6. Current Sensitive Uses Map

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Preliminary Recommendation
 Maintain existing 600-foot buffer distance of all sensitive uses.  Remove ability to locate within buffer with Conditional Use Permit approval by the Planning and Design Commission.
 Remove neighborhood and community parks as a sensitive use for cannabis production.
 Prohibit cannabis dispensaries from being located 600 feet or less from the following land uses:

Existing Land Uses with Revised Definitions
o “Park” now means any public park classified as a multi-use regional park, multi- use community park, special use community park, multi-use neighborhood park, or neighborhood play lot listed in the City’s most recently adopted parks plan. o “Substance abuse rehabilitation center” now means facilities licensed by the State Department of Health Care Services pursuant to California Health and Safety Code sections 11834.01 through 11834.50.

New Land Uses
o Remove and replace “Youth-oriented facility” with:

Current Sensitive Uses by Cannabis Business Type
Cannabis Dispensary Cannabis Production Cannabis Testing K-12 School K-12 School K-12 School
Park Neighborhood & Community Park
Youth-Oriented Facility
Substance Abuse Rehabilitation Center
Faith-Based Institution
Childcare In-home/Center
Other Dispensary
Cinema
Tobacco Retailer
Residential Zone

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o “Community center” means a community center, senior center, or clubhouse designated as such in the City’s most recently adopted parks plan; and o “Library” is the same as “library; archive” used in Chapter 17.108.130 (“L” Definitions).

Existing Land Uses to be Removed from Buffer Requirement o “Childcare, in-home/center”
o “Cinema”
o “Faith-based institution”
o “Other dispensary”
o “Tobacco retailer”
o “Residential zone”
 Mandatory compliance with all buffers verified through Administrative Permit review process.

Preliminary Recommendation - Sensitive Uses by Cannabis Business Type Cannabis Dispensary Cannabis Production Cannabis Testing K-12 School K-12 School K-12 School
Park Neighborhood & Community Park
Youth-Oriented Facility
Community Center
Library
Substance Abuse Rehabilitation Center
Faith-Based Institution
Childcare In-home/Center
Other Dispensary
Cinema
Tobacco Retailer
Residential Zone
[_____] = Revised Criteria [______] = Removed [______] = New Land Use

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Click for Map-7. Sensitive Uses and Buffers – Preliminary Recommendations Map

Community Feedback
 Sensitive use requirements were the most discussed topic during the community engagement phase and feedback received varied widely.
 During the community engagement phase, staff heard varying levels of support for the following sensitive uses:
o All parks
o Only parks with playgrounds or sports fields
o Youth and youth-oriented facilities; childcare
o Faith-based institutions
o Museums
o Jails, correctional facilities, and court houses
o Healthcare and medical offices
Final Recommendation
 In addition to the preliminary recommendations:
 Maintain the existing “youth-oriented facility” sensitive use but redefine to mean any non-profit entity that primarily caters to minors or provides services primarily for minors.
 Add “museums” as a sensitive use and use the same definition as provided at City Code Chapter 17.108.140 (“M” Definitions).

Click here for Map-8. Sensitive Uses and Buffers – Final Recommendations Map

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Final Recommendation - Sensitive Uses by Cannabis Business Type Cannabis Dispensary Cannabis Production Cannabis Testing K-12 School K-12 School K-12 School
Park Neighborhood & Community Park
Youth-Oriented Facility
Community Center
Library
Museum
Substance Abuse Rehabilitation Center
Faith-Based Institution
Childcare In-home/Center
Other Dispensary
Cinema
Tobacco Retailer
Residential Zone
[____] = Revised Criteria [______] = Removed [______] = New Land Use

Staff Rationale
Staff’s final recommendation seeks to balance competing cultural values and preferences with practicable regulations that are easily verified and, therefore, lead to predictable outcomes. During the community engagement phase, three community value themes emerged that staff integrated into its’ recommendation. Each theme expressed as a policy goal (i.e., the community’s voice), staff’s proposed policy response, and exact ordinance text (i.e., sensitive land use definitions) are below.

1. Community Value Theme: Youth
a. Policy Goal: Include sensitive land uses for impressionable youth ages 6-17, and public or institutional uses that include youth programs and services.
b. Policy Response: Ordinance includes nonprofit entities that primarily provide services for minors and focus on youth
development.
c. Ordinance Text: K-12 schools, community centers, libraries,

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museums, and youth-oriented facilities.

2. Community Value Theme: Vulnerable Populations
a. Policy Goal: Include land uses for vulnerable populations and community members recovering from addiction.
b. Policy Response: Ordinance includes licensed facilities that provide care for people who have a dependency on alcohol
and controlled substances.
c. Ordinance Text: Substance abuse rehabilitation centers

3. Community Value Theme: Parks; areas for social, educational, or cultural activities
a. Policy Goal: Include land uses where it is likely there is a mix of the general public of all ages (i.e., recreate and
socialize) and public or institutional uses that have
community amenities and programs.
b. Policy Response: Ordinance includes areas where community members can socialize and support recreation for all
ages. In addition, land uses that provide educational
and cultural programs and amenities are also
included.
c. Ordinance Text: Parks, community centers, libraries, museums, and youth-oriented facilities.

Overall Rationale:
 Recommendations would result in clear and easily identifiable sensitive uses that require a strict 600’ buffer (i.e., no longer able to locate within a sensitive use buffer with PDC approval).
 The 2022 Comprehensive Cannabis Study demonstrates that cannabis land uses do not cause ‘impacts’ or ‘problems’. Analysis showed that cannabis uses have not had a negative impact on adjacent residential, commercial, or industrial uses or created increases in crime.
 Cannabis operating requirements help integrate cannabis uses with adjacent land uses as viewed from the public realm (i.e., building interior not visible).

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Cannabis Production Rationale:
 Remove neighborhood and community parks as a sensitive use for cannabis production
o 1.6% of existing cannabis production businesses are within 600 feet of a park (4 out of 243).
o Cannabis production businesses adhere to zoning standards that apply to industrial and manufacturing areas, most of which exclude parks.

Sensitive Uses Included in Ordinance – Specific Rationale:
 Parks
o Redefining “parks” to apply to neighborhood, community, and regional parks removes ~30% of designated “parkland” that is not supportive of recreational or social activities (e.g. natural habitat areas, open space). o Minimal amount of neighborhood, community, or regional parks without a “playground” or “sports field” (~14%). However, there are 38 different park amenities, which could lead to different interpretations of what would be considered a “playground” or “sports field”.
o Including all neighborhood, community, and regional parks maintains the intention of parks sensitive use, which is to provide separation from areas where the community can recreate and areas with amenities for youth.  Youth-oriented facility
o Redefining “youth-oriented facility” to apply to nonprofit establishments that cater to or provide services primarily for minors captures land uses that include services and programs focused on youth development.
o Private businesses that may cater to minors provide the opportunity to also include the sale of alcohol, which does not wholly align with capturing land uses focused on youth development (i.e., provide services primarily for minors). o Nonprofit businesses are verifiable where private businesses require discretion as to what may constitute as a “youth-oriented facility”.  Museums
o Museums capture land uses for social, educational, and cultural activities including youth development.

Existing Sensitive Uses Excluded from Ordinance – Specific Rationale:
 Childcare

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o Childcare uses serve children aged 6 weeks to 6 years old (i.e., not impressionable youth).
o Childcare facilities are a controlled environment with children under constant supervision and must be dropped off/picked up by a guardian. o Minimal interactions or visibly of adjacent land uses. o Other sensitive uses such as libraries, community centers, and parks provide separation requirements in areas where it is likely to have youth/young children.  Faith-based institution
o While the City Council’s Policy Direction included consideration for faith-based institutions, the final recommendation is to remove them as a sensitive use for the following reasons:
 Almost half of storefront dispensaries were granted Conditional Use Permit approval within a faith-based institution buffer (~45%).  Minimal land use issues between operating storefront dispensaries and faith- based institutions.
 Public hearings for storefront dispensaries exclude opposition based on the location in relation to a faith-based institution or effects of business operations.
 Jails, Courthouses, and Correctional Facilities
o Individuals associated with these land uses travel to/from for a variety of reasons not necessarily related to drug or substance issues.
o There are existing alcohol and tobacco retail uses adjacent to these land uses. o Business operating requirements (i.e., onsite security, screening of retail areas, etc.) would help ensure cannabis retail activities do not impact adjacent land uses and make it difficult to differentiate from the public realm.  Healthcare and Medical Offices
o The State of California recognizes cannabis as a medical treatment option.

Inclusion of healthcare and medical offices conflicts with the State’s view on cannabis.
o Medical offices mean “a facility in which substantially all of the services provided constitute the practice of medicine, surgery, dentistry, optometry, podiatry, chiropractic, acupuncture, acupressure, psychology, psychiatry, counseling, medical-related laboratory services, or similar health services”, which would

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include services provided to medical cannabis patients.” o Medical offices are prevalent throughout the community and would be extremely difficult for applicants and staff to locate/verify.

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Council Point of Direction #5: Consider the suitability of mixed-light cannabis uses.

What are mixed-light facilities?
 “Mixed-light cannabis uses” refer to a building type used for cannabis cultivation.  Mixed-light facilities mainly differ from conventional structures by having a translucent roof.
 Mixed-light facilities provide the opportunity for cultivation to utilize sunlight during the daytime resulting in lower utility demands and operating costs.

Issues
 Cannabis cultivation represents the City’s largest cannabis business sector (i.e., highest number of cannabis businesses and largest labor force).  Cannabis cultivation is primarily located in industrial and manufacturing areas (i.e., City Council District #2 & #6).
 There is only one cannabis business using a ‘mixed-light’ approach to cultivation.  Concerns about mixed-light facilities include light pollution, security, odor, and building reuse (i.e., for non-cannabis businesses).

Existing Regulations
 There are no Title 17 provisions specific to “mixed-light cannabis uses” or “mixed- light facilities”.
 Development of new facilities, including mixed-light facilities, or modifications to existing structures would require approval of 1) Site Plan and Design Review permit, and 2) Building permit.
 The Site Plan and Design Review process provides for the imposition of conditions of approval addressing light pollution, and business operating permits may include conditions of approval addressing security and odor.

Preliminary Recommendation
Make no changes to Title 17 zoning regulations specific to mixed-light cannabis uses.

Community Feedback
During the April 5, 2022 Planning and Design Commission meeting, the Power Inn Alliance (“PIA”) raised concerns about mixed-light cannabis uses citing that their

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building type could not easily be reused for other commercial or industrial purposes.

Staff subsequently met with the PIA where the same concern was voiced. No other feedback was provided on this topic during the community engagement phase.

Final Recommendation
No changes to preliminary recommendation.

Staff Rationale
 There is only one existing mixed-light facility in the entire city (1 out of 127 cultivation sites).
 The City has recently seen a significant slowdown in cannabis cultivation applications.
 The 2022 Comprehensive Cannabis Study suggested that the City might see a reduction in cultivation uses due to the expansion of major cultivation sites emerging in California’s coastal regions and that additional zoning regulations such as floor area restrictions may not be necessary.
 When reviewing the one existing mixed-light facility, staff identified the following benefits:
o Mixed-light facilities have lower energy needs compared to conventional indoor cultivation facilities.
o State building code requirements and local business operating requirements address concerns relating to light pollution, odor control, and building security. o Mixed-light facilities could be adapted (i.e., reused) to traditional agricultural uses. A local example of traditional agricultural uses within a mixed-light facility includes Gotham Greens (Davis, CA).

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Council Point of Direction #6: Consider zoning and a permit type for cannabis research and development facilities.

What is cannabis research and development?
 Cannabis research and development uses are laboratory facilities for the purpose of conducting scientific research typically involving new products, technologies, or processes that are designed, tested, and developed.
 Cannabis research and development facilities do not produce cannabis related products for retail sale.

Issues
 There is no State definition or license type for “cannabis research and development”.  The State of California has an exclusive grant program for public colleges to engage in cannabis research and development activities.
 Staff research found no private sector businesses relating to cannabis research and development.
 The 2022 Comprehensive Cannabis Study suggested that, because of the growth and growth potential of cannabis manufacturing, a new cannabis business sector could emerge in the form of cannabis research and development. To date, that sector has not emerged.

Existing Regulations
There are no zoning regulations specific to cannabis research and development uses.

Preliminary Recommendation
Amend the “cannabis testing” definition to include cannabis research and development to include it as an allowed use.

Community Feedback
 There was no feedback specific to cannabis research and development uses.  A few cannabis business owners requested clarification that cannabis research and development is not the same as cannabis production uses (e.g. manufacturing, cultivation, etc.) analyzing and experimenting with internal business operations (e.g., experimental plot, different materials/products, etc.).

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Final Recommendation
No changes to preliminary recommendation.

Staff Rationale
 Cannabis testing uses are already provided for in local zoning regulations and have similar operational parameters as research and development (e.g., both occur in laboratory setting and have similar equipment needs).
 Cannabis testing uses are allowed in all industrial zones and general and heavy commercial zones.
 There is a low regulatory barrier for cannabis testing uses and existing zoning regulations are sufficient to accommodate potential industry growth.  Amending the definition of cannabis testing to include research and development provides for future investment in that business sector at locations appropriate to their land use activities.

Council Point of Direction #7: Consider removing cannabis distribution from the current uses subject to a district-based square footage cap.

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What is a district-based square footage cap?
 Following the passage of the Adult Use of Marijuana Act in 2016, the City processed a high number of Conditional Use Permit applications for cannabis land uses.  In 2018, the industrial area found in the southeast of the city had 116 of 213 Conditional Use Permit applications and approximately 2.8 million square feet of approved cannabis cultivation floor area.
 In 2018, the City Council adopted a 2.5 million square foot floor area limitation or ‘cap’ for cannabis cultivation and distribution within a defined southeast industrial area.

Issues
 Cultivation was the primary concern for the southeast industrial area floor area cap as there were minimal cannabis manufacturing and distribution applications in 2018.  The 2022 Comprehensive Cannabis Study suggested that the City might see a reduction in cultivation uses due to the expansion of major cultivation sites emerging in California’s coastal regions and that additional zoning regulations such as floor area restrictions may not be necessary.

Existing Regulations
 City Code Section 17.228.900.E.2.a states (click here):
o “The proposed cannabis production use is located within the area bounded by Power Inn Road to the west, Folsom Boulevard to the north, and the city limits to the east and south; and will result in more than 2.5 million square feet of building floor space approved by a conditional use permit for cannabis production use in that area. Building floor space designated for a cannabis manufacturing use in a conditional use permit may be excluded from the 2.5 million square footage calculation.”
Preliminary Recommendation
 Maintain the existing 2.5 million square foot maximum limit but apply only to “cannabis cultivation” floor area (i.e., exclude “cannabis distribution”). o “When located in the area bounded by Power Inn Road to the west, Folsom Boulevard to the north, and the city limits to the east and south, the total of all cannabis cultivation uses shall not result in more than 2.5 million square feet in that area.”

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Community Feedback
During the August 25, 2022 Planning and Design Commission meeting, a representative from the Power Inn Alliance support for removing cannabis distribution floor area from the cap. Staff also met with PIA on July 30, 2024 to discuss the preliminary recommendation, in which support for removing cannabis distribution from the cap was reiterated. During the meeting, questions were raised relating to how the cap floor area limit would be monitored and enforced if cannabis distribution was removed.

Final Recommendation
No changes to preliminary recommendation.

Staff Rationale
 The 2022 Comprehensive Cannabis Study suggested that the City might see a reduction in cultivation uses due to the expansion of major cultivation sites emerging in California’s coastal regions and that additional zoning regulations such as floor area restrictions may not be necessary.
 Staff has observed a significant slowdown in cannabis production permit requests.  Staff also reviewed approved Conditional Use Permits for cannabis production in the southeast industrial area and discovered twenty-three (23) were expired.  As of February 14, 2025, 1,924,442 square feet out of the 2.5 million square feet limit had an approved and valid Conditional Use Permit. This means 575,558 square feet of floor area is available.
 Cannabis cultivation was the primary concern that led to the southeast industrial area cap. Cultivation requires significantly larger buildings and, in turn, floor area.  Cannabis distribution uses have a small footprint (i.e., is focused on short-term storage and transport of finished products from cultivators or manufacturers) and when incorporated with other cannabis production uses provides for the opportunity to reduce operational needs (e.g., vehicle trips).

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Substantive Ordinance Provisions
The following sections provide further analysis of important aspects of the proposed ordinance not specifically related to the City Council points of direction addressed above.

Public Notice
Issues
 Community members expressed interest in being informed and involved with the review of cannabis applications.
 Public notice and hearing are required for land uses subject to a conditional use permit.
 Conditional use permits are intended for land uses known to cause impacts or capable of creating special problems and, thus, are subject to discretionary review.  The 2022 Comprehensive Cannabis Study establishes that cannabis land uses do not cause a negative impact on nearby retail or industrial uses, have no negative impact on nearby home values, and that dispensaries do not create increases in crime beyond levels generated by other businesses.
 Existing permit processing policy for non-impactful land uses limits the public’s involvement (e.g., no notice provided, no hearing required).

Existing Regulations
 City Code Section 17.812.010.E states (click here): “Administrative permits are ministerial in nature and are conducted at the staff level under the general direction of the planning director, without notice and hearing.”
Community Feedback
 During community engagement, the following feedback was provided and focused solely on storefront dispensary uses.
o Some speakers preferred discretionary review so they could be informed of application submittals (i.e., consistent with existing policy). o A few speakers stated a preference for discretionary review to make sure the operator is responsible for community/neighborhood concerns. o A few speakers suggested conditional use permits were preferrable from an enforcement standpoint.

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o Many speakers stated a preference for the change to Administrative Permits excluding public notice and hearing requirements.

Recommendation
 When considering community input, staff observed competing viewpoints and a body of objective information at odds with the express purpose of a Conditional Use Permit. In response, staff proposes a new permit processing policy for cannabis land uses that strikes a balance between:
o Community members desire to both be informed of pending applications and help ensure the protection of sensitive land uses (i.e., by confirming buffer standard is complied with); and
o Existing and future cannabis business owners desire for regulations that reflect known land use impacts, are more equitable, and that result in greater predictability in outcomes.
 The ordinance modifies the Administrative Permit public notice requirement for cannabis land uses as follows:
o At least ten days prior to issuing a decision, the city shall post notice of the application at the subject property and mail notice of the application to all property owners within 600 feet (i.e., separation distance); and o Provide mailed notice of final decisions relating to cannabis administrative permits.
 Administrative permits are subject to reconsideration, and final decision notices would provide information relating to the reconsideration process.  Any person interested in being informed of pending building and planning permit applications may (for free) set up alerts using
https//:sacramento.agencycounter.com. These can be customized according to geographic interest and permit type.
 Concerns relating to responsible business operations are more effectively addressed through business licensing requirements (e.g., through annual renewals that enable new requirements to be imposed and where non-compliance affects renewal decisions).

Reconsideration
Issues
 Some members of the Planning & Design Commission expressed an interest in retaining some form redress (e.g., appeal, call-up, reconsideration) whereby the

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community could have concerns addressed.
 As mentioned, under current policy, Administrative Permits are reviewed at the staff- level without public notice. Similarly, when a decision is rendered and subject to reconsideration, notice is also not provided.

Existing Regulations
 City Code Section 17.812.020.B (reconsideration of staff-level decisions) states (click here): “An opportunity for any person dissatisfied with the decision to request review and reconsideration of the decision by the reviewing director before findings of fact are adopted and the decision is final.”
Recommendation
 The proposed ordinance includes a new policy whereby property owners within the sensitive use buffer are provided notice of a cannabis administrative permit application and notice of final decision (i.e., compliance or noncompliance with separation requirements). Notice of final decision would include information relating to the reconsideration process further supporting protection of sensitive uses and allowing for community participation.

Staff Rationale
 The reconsideration process is limited to an examination of facts used to determine compliance or noncompliance with applicable standards (i.e., pass or fail).  As applied in the proposed ordinance, this process is applied and appropriately focused on what the community appears to care most about – i.e., the presence or absence of one or more sensitive uses within a prescribed radius.  The proposed ordinance enhances the existing permit review and notification process to invite applicants and affected property owners to examine staff’s determination before a permit application is approved.
 An “appeal” process functions differently and applies to discretionary permit decisions whereby the overall merits are considered. Consequently, appeals may lead to permit denial or approval for a broad spectrum of reasons tied to findings which are supported by facts but not limited to pass/fail standards. For staff, this form of redress is inconsistent with the 2022 Comprehensive Cannabis Study’s findings related to the actual land use effects of cannabis businesses.  A “call-up” process is reserved for City Council members and presently applied very narrowly to select land use issues subject to discretionary review. For staff, this form of redress is also inconsistent with the 2022 Comprehensive Cannabis Study’s findings related to the actual land use effects of cannabis businesses.

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Prior Conditional Use Permits & Nonconforming Uses
Issues
 The City has issued many Conditional Use Permits for cannabis land uses over the years. Changes to applicable standards has the potential to cause these permits to not conform to them. Changes to the required permit type raises a question of how modifications to approved projects should be processed.  Without ordinance language explaining the effect of regulatory changes on previously approved and valid permits, uncertainty and confusion may affect the enforcement of applicable standards.
 Existing regulations are very permissive and could result in modifications that circumvent the policy change to mandatory sensitive use buffers (e.g., delivery-only dispensary turning into a store-front dispensary when not meeting buffer standard).

Existing Regulations
The following are existing zoning regulations relating to prior Conditional Use Permits and nonconforming uses.
 Section 17.228.920.J (click here)
o Clarifies that previously approved medical marijuana dispensaries are authorized to sell medical and recreational cannabis as provided for by State law.  Section 17.232.090 (click here)
o Allows for an existing nonconforming use to change to another nonconforming use with conditional use permit approval.
 Section 17.232.110 (click here)
o Allows for the re-establishment of a prior nonconforming use after the existing nonconforming use expires for discontinuance of use.
 Section 17.808.440 (click here)
o Outlines procedural requirements for modifications to approved terms and conditions of conditional use permits.

Community Feedback
Several existing cannabis business owners expressed an interest in understanding how new regulations would affect their current and potential future operations.

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Recommendation
 For existing Conditional Use Permit and future Administrative Permit holders, the proposed ordinance would:
o Prohibit a legal nonconforming cannabis use from changing to another nonconforming cannabis use.
o Prohibit the re-establishment of a nonconforming cannabis use after the discontinuance of said use.
 For existing Conditional Use Permit holders, the proposed ordinance:
o Makes explicit that approved and valid permits remain unchanged and subject to their terms and conditions; and
o Allow for their permits to be modified by the Zoning Administrator at the Director- level, subject to compliance with all current standards.  Maintain the existing allowance of previously approved medical marijuana dispensaries to sell medical and recreational cannabis per State law.

Staff Rationale
 Given the substantive changes in regulation, it is necessary to clearly describe the effect of regulatory changes on valid permits and identify the requirements for the review of proposed modifications to them.
 The proposed changes would prohibit legal nonconforming cannabis uses from changing to another use that would not normally be allowed (i.e., legal nonconforming delivery-only dispensary changing to or adding a nonconforming storefront dispensary use), and the re-establishment of nonconforming uses previously discontinued.
 These restrictions would ensure new cannabis land uses comply with adopted standards and the intention those standards were adopted.

Cannabis Processing
Issues
 Senate Bill-152 became effective September 13, 2023. This bill added a definition and license classification for cannabis “processor” including processor license requirements.
 A “processor” is a cultivation sub-license that allows ancillary functions of cultivation (e.g., dry, trim, store, and package) but does not allow processors to cultivate

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cannabis.
 As allowed by State law, cannabis production uses can now apply for a “processor” sub-license to diversify business operations and services.

Existing Regulations
Local zoning regulations are silent on the topic of cannabis processing.

Community Feedback
Business stakeholders have reached out to staff for clarification of zoning requirements for cannabis processing uses following the adoption of SB-152.

Recommendation
Amend the existing definition for cannabis production to include cannabis processing.

Staff Rationale
The proposed definition provides clarification and consistency with State cannabis licensing provisions.

Cannabis Consumption Lounges
Issues
 The passage of Proposition 64 in 2016 allowed local governments to regulate cannabis consumption lounges. The first consumption lounges opened in San Francisco in 2018, and there are approximately 30 consumption lounges currently operating throughout the state.
 The sparsity of consumption lounge operations means that potential land use impacts have not been studied as thoroughly as dispensaries and other cannabis business sectors.
 On November 19, 2024, the City Council adopted an ordinance amending Title 5 of the City Code concerning business regulations for cannabis consumption lounges.

To allow cannabis consumption lounges to locate in the city, additional amendments to Title 17 of the City Code are necessary.
 City Council directed staff to include the ability for call-up review for cannabis consumption lounges.

Existing Regulations
There are no zoning regulations specific to cannabis consumption lounges.

Page 31 of 40 ends

Recommendation
 Allow cannabis consumption lounges in all zoning districts where cannabis storefront dispensaries are allowed;
 Require Conditional Use Permit review and approval by the Planning and Design Commission;
 As requested by City Council, provide for City Councilmember call up of all approved Conditional Use Permits; and
 A mandatory 600-foot sensitive use buffer (i.e., same sensitive uses as applicable to dispensaries).

Staff Rationale
The proposed permit type (i.e., conditional use permit) for cannabis consumption lounges aligns with the legislative purpose in that consumption lounges may be capable of creating special problems since there has no minimal, if any, research into consumption lounge land use effects. The recommendation would prohibit a consumption lounge operating within a sensitive use buffer further supporting community values and providing a clear expectation of where consumption lounges may locate. Lastly, the recommendations include councilmember call up provisions for approved consumption lounge conditional use permits.

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Map-1. Existing Storefront Dispensary Zoning Map

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Map-2. Existing Delivery-Only Dispensary Zoning Map

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Map-3. RMX, C-1, and C-3 Zoning Map

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Map-4. Current and Recommended Storefront Dispensary Zoning Map

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Map-5. Existing Cannabis Manufacturing Zoning Map

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Map-6. Current Sensitive Uses Map

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Map-7. Sensitive Uses and Buffers – Preliminary Recommendations Map

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Page 40 of 40 ends

Map-8. Sensitive Uses and Buffers – Final Recommendations Map

Page 1 of 2 ends

Attachment 3
Community Engagement Summary
After conducting extensive research and analysis and then preparing preliminary recommendations, staff facilitated a community engagement process to both inform and receive feedback.

Engagement Activities
 May 21, 2024 Law and Legislation Committee meeting
 July 23, 2024 Downtown Sacramento Partnership meeting  July 25, 2024 Cannabis stakeholder meeting
 July 30, 2024 Midtown Association meeting
 July 30, 2024 Power Inn Alliance meeting
 August 20, 2024 Law and Legislation Committee meeting  September 5, 2024 Virtual Webinar #1
 September 12, 2024 Planning and Design Commission meeting  September 19, 2024 Virtual Webinar #2
Community Feedback & Staff Response
Community feedback received by staff can be categorized into three main themes.

Those themes and staff’s responses are provided in the table below. Of all the topics raised, sensitive uses were the most frequent and discussed topic.

Community Feedback & Staff Response Summary Table

Page 2 of 2 ends

Feedback Theme
Permitting
Procedures
Community
Participation Sensitive Uses
Community
Comments
 Desire to be
informed &
involved with
the review of
cannabis
applications.
 Ensure
compliance
with standards.
 Preference for
discretionary
review for
enforcement
purposes.
 Planning &
Design
Commission
expressed
interest in
retaining some
form of redress
(e.g. appeal, call-
up,
reconsideration)
whereby the
community could
have concerns
addressed.

Suggestions included:
 All parks
 Only parks with
playgrounds & sports
fields
 Museums
 Youth-oriented
facilities
 Childcare facilities
 Jails/correctional
facilities
 Courthouses
 Healthcare/medical
offices
Staff
Response
 Notice of
cannabis
application
filing and
decision
required.
 Admin permit
verifies
compliance
with mandatory
standards.
 Concerns
relating to
business
operations are
more effectively
addressed
through annual
business
licensing.
 Admin permits
are subject to
reconsideration.
 Limited to
examination of
facts to
determine
compliance with
mandatory
standards (i.e.,
pass or fail).
 Most appropriate
form of redress
for processing
non-impactful
land uses (i.e.,
admin permits).
 Notice of
application
decision required
to enable
reconsideration.
 Identify uses
including
impressionable youth,
vulnerable
populations, and
areas for recreational,
social, educational, or
cultural activities.
 Provides balance
between community
values & the known
(non)impact of
cannabis uses.

Further details of community feedback are provided within Attachment #2 (Background and Ordinance Summary).

Page 1 of 4 ends

Attachment 4
Planning and Design Commission Feeback & Staff Response

On September 12, 2024, the Planning and Design Commission discussed preliminary recommendations of the Title 17 Cannabis Amendments Project and provided feedback.

Commission feedback and staff responses are provided below. Note: at the time of the September 2024 meeting, cannabis consumption lounges were not presented as part of the overall project. They have since been included and are, nonetheless, addressed within the context of comments received at the time.

Redress
The Planning & Design Commission expressed interest in retaining some form of redress (e.g. appeal, call-up, reconsideration) whereby the community could have concerns addressed.

Staff Response:
 For all cannabis land uses subject to the recommended Administrative Permit requirement, the proposed ordinance includes a new requirement whereby the following opportunities for community input are provided:
o Notice of a Cannabis Administrative Permit Application. When staff receive an application, the following will occur:
 Email notification will be sent to all registered neighborhood groups; and  The subject property will be posted on-site (e.g., project details, staff contact information); and
 Mailed notice will be sent to all property owners within the sensitive use buffer radius (i.e., 600 feet).

The goal of these notifications is to inform. Interested parties can establish a dialogue with staff on the facts under review.
o Notice of Final Decision. When staff act on an application (e.g., approve or deny), mailed notice will again be provided to all property owners within the sensitive use buffer. This notice will include information relating to the reconsideration process. The goal of this notice is to provide for redress when an interested party thinks the facts do not support the decision.
 An “appeal” process functions differently and applies to discretionary permit decisions whereby the overall merits are considered. Consequently, appeals may lead to denial or approval for a broader range of reasons (e.g., findings of approval).

Page 2 of 4 ends

Ministerial applications have a narrower scope of review by relying on objective standards (i.e., distance from sensitive use - pass/fail). For staff, the Administrative Permit and accompanying reconsideration process achieve the following goals:
o Fairness: The 2022 Comprehensive Cannabis Study’s findings related to the actual land use effects of cannabis businesses indicate they are like other non- residential land uses. For example, subjecting cannabis dispensaries to a discretionary permit requirement when other retail land uses are allowed by-right treats them differently when the study indicates they are similar. The Administrative Permit achieves greater fairness by providing for a review process at the most comparable level and which enables the verification of compliance with applicable standards (e.g., distance from sensitive uses). o Equity: Viewing the Conditional Use Permit (and related appeals process) through an equity lens highlights two disparities: (1) between the permit applicants; and (2) the existing regulatory scheme’s result of concentrating cannabis businesses in disadvantaged communities (e.g., District 2 and 6).

The Conditional Use Permit (CUP) process is the costliest and riskiest for applicants. Graduates of the City’s Cannabis Opportunity Reinvestment and Equity (CORE) program who seek CUPs are put at a disadvantage. The Administrative Permit achieves greater equity for applicants by uniformly lowering the barrier to entry (e.g., permit cost, time to obtain, certainty of approval) without compromising the community’s standards (i.e., distance from sensitive uses).

The premise of the CUP process for cannabis uses is that it supports the correct siting of them within the community. The permit history to date shows a regulatory incentive whereby cannabis uses have chosen the path of least resistance by locating in District 2 and 6, at property least incumbered by sensitive uses. When combined with proposed changes to sensitive use definitions, the Administrative Permit process enables greater equity (for dispensaries, in particular) by removing that incentive and allowing for a more equitable distribution throughout the city.
 A “call-up” process is reserved for City Council members and presently applied very narrowly to select land use issues subject to discretionary review. For staff and all cannabis land uses (excluding consumption lounges), this form of redress is also inconsistent with the 2022 Comprehensive Cannabis Study’s findings related to the actual land use effects of cannabis businesses.
 For cannabis consumption lounges, the proposed ordinance includes, as requested by City Council, a call-up provision for approved Conditional Use Permits.

Youth – Sensitive Use

Page 3 of 4 ends

During the Planning and Design Commission discussion relating to sensitive uses, some comments were raised relating to youth-oriented uses. The commission expressed interest in capturing uses focused on youth development and provided examples of non-profit youth-oriented businesses. The preliminary recommendation to replace “youth-oriented facilities” with “community centers” and “libraries” would not include non-profit businesses focused on youth development.

Staff Response:
 Based on Commission feedback, the proposed ordinance maintains “youth-oriented facility” as a sensitive use but refines the definition to mean any non-profit entity that primarily caters to minors or provides services primarily for minors.  Non-profit businesses are verifiable through the city’s business operating permit certificate database which will lead to consistent application of the standard over time.
 For-profit businesses may imply an emphasis on youth (e.g., Chuck E. Cheese, McDonalds) or simply be frequented by a wide range of ages (e.g., movie theaters).

They are prevalent in the community, can include the sale of alcohol, and are difficult to clearly categorize as ‘youth-oriented.’
 Distinguishing between non-profit and for-profit organizations enables the consistent application of a standard (i.e., buffer) and clear emphasis on locations that are truly ‘youth-oriented’ through mission and purpose.

Cultivation, Odor & Security
During the Planning and Design Commission discussion, some commissioners inquired about cannabis cultivation, how odor and security concerns would be addressed through the Administrative Permit process, and the Conditional Use Permit process for cannabis cultivation.

Staff Response:
 The comprehensive cannabis study documents that cannabis businesses do not result in crime beyond those of other non-residential land uses. At the same time, staff is mindful that robust security is a necessity and that there have been businesses out of compliance with odor control requirements.  Staff reviewed how these issues are presently addressed through existing regulation and note there two local layers: (1) Title 5 Business Operating Permits; and (2) Title 17 Conditional Use Permits. In reviewing permits issued under both titles of City Code, it is the norm for there to be duplicative and inconsistent conditions of approval. This has led to confusion for both permittees and staff.  Title 5 Business Operating Permits are issued annually. One benefit to this review

Page 4 of 4 ends

cycle is that the accompanying conditions of approval may be updated (e.g., to include the latest security features). Additionally, from a compliance perspective, the permit may not be renewed when security and/or odor requirements are not met (see City Code Sec. 5.150.240).
 Title 17 Conditional Use Permits are issued once. Changing the CUP’s terms and conditions requires either: (a) a permittee to initiate; or (b) an enforcement pathway consisting of revocation proceedings in a public hearing. This is considerably more time and less nimble than the Business Operating Permit process.  Business Operating Permit security conditions can be modified or amended during annual business operating permit renewal process and provide the best avenue for the City to maintain appropriate business operating security requirements for an ever-changing industry.
 The Sacramento Police Department supports imposing security requirements through the Business Operating Permit process to ensure clarity of requirements and continual improvement through annual renewals.
 City Code 5.150.120 (Odor control) states, “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.” All Business Operating Permits are subject to this requirement. Creating new regulations for Conditional Use Permits does not enhance or improve the City’s enforcement abilities.

Page 1 of 19 ends

ORDINANCE NO.

Adopted by the Sacramento City Council
Date Adopted

AN ORDINANCE AMENDING VARIOUS PROVISIONS OF TITLE 17
OF THE SACRAMENTO CITY CODE, RELATING TO CANNABIS LAND USES

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1.

The city council finds the following:

2. The amendments in this ordinance promote the public health, safety, convenience, and welfare of the city.

SECTION 2.

A. Section 17.108.040 (“C” definitions) of the Sacramento City Code is hereby amended as follows:

1. A definition of “cannabis consumption lounge” is hereby added to read as follows:

“Cannabis consumption lounge” means the area within a storefront cannabis dispensary where cannabis or cannabis products are allowed to be consumed in accordance with this code.

2. A definition of “cannabis dispensary, storefront” is hereby added to read as follows:

“Cannabis dispensary, storefront” has the same meaning as in section 5.150.020.

3. A definition of “cannabis manufacturing, nonvolatile” is hereby added to read as follows:

“Cannabis manufacturing, nonvolatile” means
cannabis manufacturing done
without the use of volatile solvents.

4. A definition of “cannabis processing” is hereby added to read as follows:

Page 2 of 19 ends

5. A definition of “cannabis production” is hereby added to read as follows:

“Cannabis production” means cannabis cultivation, cannabis distribution, cannabis manufacturing, and cannabis processing, and any combination thereof.

6. The definition of “cannabis testing” is hereby amended to read as follows:

“Cannabis testing” means performing scientific analysis of cannabis or cannabis products to determine its chemical profile, the presence of contaminants, or other
similar data, and research and development related to the innovation and improvement of cannabis products and the processing of cannabis.

7. The definition of “cannabis use” is hereby amended to read as follows:

“Cannabis use” means cannabis production, cannabis testing, cannabis dispensary, and cannabis consumption lounge.

B. Except
as amended by subsection A above, all provisions of section 17.108.040 remain unchanged and in full effect.

SECTION 3.

A. Section 17.200.110 (A zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis cultivation” is hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation Subject to special use regulations in article IX of chapter

17.228

2. The “cannabis cultivation” row in subsection B.2 (conditional uses; industrial and agricultural uses) is hereby deleted.

B. Except as amended by subsection A above, all provisions of Section 17.200.110 remain unchanged and in full effect.

Page 3 of 19 ends

SECTION 4.

A. Section 17.212.110 (RMX zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary (delivery‐only cannabis dispensary not allowed)

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

B. Except as amended by subsection A above, all provisions of section 17.212.110 remain unchanged and in full effect.

SECTION 5.

A. Section 17.216.510 (SC‐zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary (delivery‐only cannabis dispensary not allowed)

Subject to special use regulations in article IX of chapter

17.228

2. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby deleted.

Page 4 of 19 ends

3. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

B. Except as amended by subsection A above, all provisions of section 17.216.510 remain unchanged and in full effect.

SECTION 6.

A. Section 17.216.610 (C‐1 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary (delivery‐only cannabis dispensary not allowed)

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

B. Except as amended by subsection A above, all provisions of section 17.216.610 remain unchanged and in full effect.

SECTION 7.

A. Section 17.216.710 (C‐2 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary Subject to special use regulations in article IX of chapter

17.228

Page 5 of 19 ends

2. Rows for “cannabis cultivation” and “cannabis distribution” are hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform and subject to special use regulations in article IX of chapter

17.228
Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

3. The “cannabis manufacturing” and “cannabis testing” rows in subsection A.3 (permitted uses; industrial and agricultural uses) are hereby amended to read as follows:

Cannabis manufacturing
Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform and subject to special use regulations in article IX of chapter

17.228
Cannabis testing Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby deleted.

5. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

6. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.216.710 remain unchanged and in full effect.

SECTION 8.

Page 6 of 19 ends

A. Section 17.216.810 (C‐3 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary
Limited to storefront cannabis dispensary (delivery‐only cannabis dispensary not allowed)

Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

B. Except as amended by subsection A above, all provisions of section 17.216.810 remain unchanged and in full effect.

SECTION 9.

A. Section 17.216.910 (C‐4 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary Subject to special use regulations in article IX of chapter

17.228

2. Rows for “cannabis cultivation” and “cannabis distribution” are hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

17.228
Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

Page 7 of 19 ends

3. The “cannabis manufacturing” and “cannabis testing” rows in subsection A.3 (permitted uses; industrial and agricultural uses) are hereby amended to read as follows:

17.228
Cannabis testing Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby deleted.

5. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

6. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.216.910 remain unchanged and in full effect.

SECTION 10.

A. Section 17.220.110 (M‐1 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary Subject to special use regulations in article IX of chapter

17.228

Page 8 of 19 ends

2. Rows for “cannabis cultivation” and “cannabis distribution” are hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

17.228
Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

3. The “cannabis manufacturing” and “cannabis testing” rows in subsection A.3 (permitted uses; industrial and agricultural uses) are hereby amended to read as follows:

17.228
Cannabis testing Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby deleted.

5. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

6. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.220.110 remain unchanged and in full effect.

SECTION 11.

Page 9 of 19 ends

A. Section 17.220.210 (M‐1(S) zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary Subject to special use regulations in article IX of chapter

17.228

2. Rows for “cannabis cultivation” and “cannabis distribution” are hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

17.228
Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

3. The “cannabis manufacturing” and “cannabis testing” rows in subsection A.3 (permitted uses; industrial and agricultural uses) are hereby amended to read as follows:

17.228
Cannabis testing Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby deleted.

5. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

Page 10 of 19 ends

6. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.220.210 remain unchanged and in full effect.

SECTION 12.

A. Section 17.220.310 (M‐2 zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary Subject to special use regulations in article IX of chapter

17.228

2. Rows for “cannabis cultivation” and “cannabis distribution” are hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

17.228
Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

3. The “cannabis manufacturing” and “cannabis testing” rows in subsection A.3 (permitted uses; industrial and agricultural uses) are hereby amended to read as follows:

17.228
Cannabis testing Subject to special use regulations in article IX of chapter

17.228

Page 11 of 19 ends

4. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby deleted.

5. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

6. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.220.310 remain unchanged and in full effect.

SECTION 13.

A. Section 17.220.410 (M‐2(S) zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary Subject to special use regulations in article IX of chapter

17.228

2. Rows for “cannabis cultivation” and “cannabis distribution” are hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

17.228
Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

Page 12 of 19 ends

3. The “cannabis manufacturing” and “cannabis testing” rows in subsection A.3 (permitted uses; industrial and agricultural uses) are hereby amended to read as follows:

17.228
Cannabis testing Subject to special use regulations in article IX of chapter

17.228

4. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby deleted.

5. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

6. The “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.220.410 remain unchanged and in full effect.

SECTION 14.

A. Section 17.220.510 (MIP zone) of the Sacramento City Code is hereby amended as follows:

1. A row for “cannabis distribution” is hereby added to the table in subsection A.2 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

Page 13 of 19 ends

2. The “cannabis manufacturing” and “cannabis testing” rows in subsection A.2 (permitted uses; industrial and agricultural uses) are hereby amended to read as follows:

17.228
Cannabis testing Subject to special use regulations in article IX of chapter

17.228

3. The “cannabis distribution” and “cannabis manufacturing” rows in subsection B.1 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.220.510 remain unchanged and in full effect.

SECTION 15.

A. Section 17.220.610 (MRD zone) of the Sacramento City Code is hereby amended as follows:

1. The “cannabis testing” row in subsection A.2 (permitted uses, commercial and institutional uses) is hereby amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis distribution” are hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis distribution Subject to special use regulations in article IX of chapter

17.228

3. The “cannabis manufacturing” row in subsection A.3 (permitted uses; industrial and agricultural uses) is hereby amended to read as follows:

Cannabis manufacturing Permitted if use is located greater than ½ mile from the center of an existing or proposed light rail station platform

Page 14 of 19 ends

and subject to special use regulations in article IX of chapter

17.228

3. The “cannabis distribution” and “cannabis manufacturing” rows in subsection B.3 (conditional uses; industrial and agricultural uses) are hereby deleted.

B. Except as amended by subsection A above, all provisions of section 17.220.610 remain unchanged and in full effect.

SECTION 16.

A. Section 17.220.710 (MT zone) of the Sacramento City Code is hereby amended as follows:

1. The “cannabis testing” row in subsection A.2 (permitted uses; commercial and institutional uses) is amended to read as follows:

Cannabis testing Subject to special use regulations in article IX of chapter

17.228

2. A row for “cannabis dispensary” is hereby added to the table in subsection A.2 (permitted uses; commercial and institutional uses) to read as follows:

Cannabis dispensary Subject to special use regulations in article IX of chapter

17.228

3. Rows for “cannabis cultivation,” “cannabis distribution,” and “cannabis manufacturing” are hereby added to the table in subsection A.3 (permitted uses; industrial and agricultural uses) to read as follows:

Cannabis cultivation Subject to special use regulations in article IX of chapter

17.228
Cannabis distribution Subject to special use regulations in article IX of chapter

17.228
Cannabis manufacturing Limited to nonvolatile manufacturing and subject to special use regulations in article IX of chapter 17.228

4. The “cannabis dispensary” row in subsection B.2 (conditional uses; commercial and institutional uses) is hereby deleted.

Page 15 of 19 ends

5. A row for “cannabis consumption lounge” is hereby added to the table in subsection B.2 (conditional uses; commercial and institutional uses) to read as follows:

Cannabis consumption lounge Subject to special use regulations in article IX of chapter 17.228 PDC

B. Except as amended by subsection A above, all provisions of section 17.220.710 remain unchanged and in full effect.

SECTION 17.

Article IX of chapter 17.228 of the Sacramento City Code is hereby deleted.

SECTION 18.

Article IX of chapter 17.228 of the Sacramento City Code is hereby added to read as follows:

Article IX. Cannabis

17.228.900 Purpose and intent.

The purpose of this article is to authorize cannabis uses that comply with the standards set forth herein. The regulations in this article work in harmony with the
regulations set forth in chapter 5.150.

17.228.910 Definitions.

For purposes of this article, the following definitions apply:

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A. “Community center” means a community center, senior center, or clubhouse designated as such in the city’s most recently adopted parks plan.

B. “Park” means a public park designated in the city’s most recently adopted parks plan as a multi‐use regional park, multi‐use community park, special use community park,
multi‐use neighborhood park, or neighborhood play lot.

D. “Sensitive use” means a community
center, library, museum, park,
school, substance abuse rehabilitation center, or youth‐oriented facility.

F. “Youth‐oriented facility” means a facility that is operated by a nonprofit entity that primarily caters to minors or primarily provides services intended for minors.

17.228.920 General requirements.

A. Administrative permit.

1. An administrative permit is required to—

a. Establish a cannabis production, cannabis testing,
or cannabis dispensary use; and

b. Modify an existing cannabis production,
cannabis
testing, or cannabis dispensary use previously authorized by an administrative permit.

2. Notice.

a. The city, at least ten days before issuing a decision on an administrative permit under this article, shall—

i. Post notice of the application at the subject
real property; and

ii. Provide notice as
set forth in subsection
A.2.c.

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b. The city shall provide notice of all final decisions on administrative permits authorized by this section as set forth in subsection A.2.c.

c. Providing notice.

i. The notice required by subsections A.2.a
and A.2.b must be given by mail or personal delivery to all owners of real property located
within 600 feet of the real property that is the subject of the application, utilizing the owners' names and addresses shown on the latest county equalized assessment roll. In lieu of the equalized assessment roll, other records of the county assessor or tax collector that contain more recent information may be used.

ii. If the number of owners to whom notice
would be mailed or delivered under subsection A.2.c.i would be greater than 1,000, then in lieu of mailed or personally‐delivered notice, notice may be given by publishing the notice in an advertisement of at least one‐eighth page in the official newspaper of the city or another newspaper of general circulation within the city.

B. Conditional use permit. In accordance with section 17.228.960, a conditional use permit is required to establish a cannabis consumption lounge.

C. Distance buffers.

1. Measuring distance. Under this article, the distance from a cannabis use to another use is the shortest distance measured in a straight line between the two closest property lines.

2. Distance from schools. No cannabis use may be
established within 600 feet of a school.

3. Maps.

a. All applications under this article must include a
scaled map that identifies all sensitive uses within the distances specified in this article by name, address, and assessor parcel number.

b. Each applicant must attest in writing, under penalty of perjury, that the map and accompanying information is true and correct to the best of their knowledge and belief.

D. Existing
conditional use permits.

1. Medical marijuana dispensaries. A medical marijuana dispensary use that has a valid conditional use permit on the effective date of the ordinance that

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codified this section is deemed to have an approved conditional use permit for a cannabis dispensary allowing for a storefront cannabis dispensary for the sale of medical and adult‐use cannabis.

2. Nonconforming uses. Conditional use permits for cannabis uses issued before the effective date of the ordinance that codified this section may not be modified under sections 17.232.050.B, 17.232.090, or 17.232.110.

E. Any permit issued in accordance with this article must specifically identify each authorized cannabis use – cannabis production (cultivation, distribution, processing, or manufacturing), cannabis testing, cannabis dispensary (store‐front cannabis dispensary, delivery‐only cannabis dispensary, or both), or cannabis consumption lounge.

17.228.930 Cannabis production.

A. Power Inn area. No administrative permit will be granted for cannabis cultivation in the area bounded by Power Inn Road to the west, Folsom Boulevard to the north, and the city limits to the east and south, if the total of all cannabis cultivation uses in that area will exceed 2.5 million square feet.

B. C‐2 zone. In the C‐2 zone, cannabis production must comply with the following provisions:

1. Cannabis distribution and nonvolatile cannabis manufacturing cannot exceed a total of 6,400 square feet per site.

2. Cannabis distribution
cannot be the only cannabis production use
on a site.

C. Signs. A cannabis production site cannot have more than one sign. The sign may be attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area.

17.228.940 Cannabis testing – signs.

A cannabis testing
site cannot have more than one sign. The sign may be
attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area.

17.228.950 Cannabis dispensary – distance buffers.

A cannabis dispensary may not be established within 600 feet of a sensitive use.

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17.228.960 Cannabis consumption lounges.

A. A conditional use permit, approved by the planning and design commission, is required to establish a cannabis consumption lounge.

B. A cannabis consumption lounge may not be established within 600 feet of a sensitive use.

C. Notice to city council. As soon as reasonably practicable after the planning and design commission makes a decision on a conditional use permit required to establish a cannabis consumption lounge, the planning director shall report that decision to the mayor and the councilmember in whose district the project is located, by sending the report by electronic mail and confirming that each received it.

D. Procedures for call‐up review. The mayor or the councilmember in whose district the project is located may call up for city council review any decision described in subsection C by filing a written request with the planning director within 10 business days of the planning and design commission's decision. If both a council member call‐up and commission‐level decision appeal are pending on the same project, the city council will consider both at the same time. Notice of the city council hearing shall be given in the manner provided in section 17.812.010.A.2.a. The hearing before the city council shall be de novo.

E. Withdrawal of request for review. The requester under subsection D may withdraw that request. The withdrawal shall be noted on the next regularly scheduled meeting of the city council and shall be considered to have occurred on that date. Any other member of the city council shall have 10 days thereafter to file a request for call‐ up review. If the tenth day is a non‐business day, the last day to file the request is the next business day. Noticing and hearing of the matter shall be in accordance with subsection D.

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