Title
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 06/05/2026]
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FileID
File ID: 2026-00904
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Location
Location: Citywide
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Recommendation
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); 2) adopt an Ordinance amending various provisions of Title 17 of the Sacramento City Code, relating to cannabis land uses; and 3) in lieu of publishing the ordinance title, publish the ordinance in full in the official newspaper of the City within ten days after adoption by the council, consistent with City Charter section 32(d).
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Contact
Contact: Kirk Skierski, Senior Planner, (916) 808-7933, ktskierski@cityofsacramento.org; Kevin Colin, Zoning Administrator, (916) 808-5260, kcolin@cityofsacramento.org; Community Development Department
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Presenter
Presenter: Kevin Colin, Zoning Administrator, (916) 808-5260, kcolin@cityofsacramento.org, Community Development Department
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Attachments
Attachments:
1-Description/Analysis
2-Cannabis Amendments Ordinance (Redline)
3-Cannabis Amendments Ordinance (Clean)
4-City Council November 18, 2025 Staff Report
5-Sensitive Uses: Dispensaries
6-Dispensaries: Review Authority
7-Cannabis Dispensaries: 1,000-foot High School Buffer
8-Staff Presentation [Updated 06/16/2026 at 9:00 AM]
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Description/Analysis
IssueDetail
Issue Detail: On November 18, 2025, the City Council reviewed, commented, and provided direction on an ordinance amending zoning regulations for cannabis land uses (Attachment 4). A majority of Councilmembers supported maintaining discretionary review (i.e., a Conditional Use Permit) and retention of the existing councilmember call-up procedures. Public comments from existing storefront dispensary owners included a request to provide a buffer between those businesses. In addition, faith leaders requested that churches and faith congregations be maintained as a sensitive use. Councilmembers also discussed increasing the mandatory school buffer from a 600-foot buffer to 1,000 feet for high schools (i.e., grades 9-12). Staff prepared a revised ordinance responsive to the direction of a majority of Councilmembers and public comment, as described below (Attachments 2 and 3).
I. Sensitive Uses:
The attached ordinance includes the following sensitive use types and buffer distances:
1. All Cannabis Land Uses
Previous Recommendation: 600-foot mandatory buffer from K-12 schools.
Attached ordinance: No change.
2. Cannabis Dispensaries:
Previous Recommendation: 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
Attached ordinance: 600-foot buffer from the following sensitive uses:
• Same as previous recommendation; plus
• Church and faith congregation; and
• Other storefront dispensary.
Rationale: On November 18, 2025, council members discussed and public speakers supported the inclusion of a buffer between storefront dispensaries. Public speakers included dispensary owners expressing concern about competition with other dispensaries. Public speakers also included faith leaders requesting that churches and faith congregations be retained as a sensitive use.
A consortium of 14 dispensary owners subsequently met with staff, emphasized the continued preference for a buffer, and clarified their perceived benefits to include: (a) more stable tax revenues (e.g., reduced likelihood of price compaction resulting from increased competition due to closer proximity); (b) a greater ability to hold individual dispensary owners accountable for their actions (e.g., compliance with regulatory requirements); and (c) to be responsive to public comments expressing concern about the number of dispensaries in particular neighborhoods.
Staff also subsequently met with a group of faith leaders at a church in Del Paso Heights. At that meeting, faith leaders expressed an interest to limit cannabis uses generally as well as specifically near churches and faith congregations.
Including churches and faith congregations and other dispensaries in the list of sensitive uses would result in ~2,260-acre decrease (i.e., 25% decrease) in areas outside sensitive use buffers. The most affected council districts are District 4 and District 5, primarily due to the inclusion of churches and faith congregations. District 2 and District 6 have the most area outside sensitive use buffers due to industrial and manufacturing zoning districts. Attachment 5 illustrates the attached ordinance’s sensitive use locations and buffers; Attachment 6 illustrates the review authority based on the 600-foot buffer.
Alternative to Staff Recommendation - Increased High School Buffer
On November 18, 2025, council members also discussed but a majority did not voice support for a 1,000-foot mandatory buffer for dispensaries from high schools (i.e., grades 9-12). The following analysis is provided to inform a potential motion to adopt the attached ordinance but with an increased buffer to high schools.
a. High School Buffer: Increase buffer from 600 feet to 1,000 feet for high schools (i.e., grades 9-12; 58 high schools).
b. K-8 School Buffer: Maintain 600-foot buffer from K-8 schools (112 K-8 schools).
c. Analysis: Attachment 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. This buffer would result in modest decreases in areas outside sensitive uses citywide (i.e., 1% decrease).
d. Ordinance Revisions: Replace “School” definition within Section 17.228.910 with “School, Elementary or Middle” and “School, High”. Revise general requirements to clarify school buffers (i.e., Section 17.228.920).
II. Permit Type
The attached ordinance includes the following permit requirements for cannabis land uses:
1. Conditional Use Permit - Zoning Administrator
a. Cannabis Uses: Cannabis production (e.g., cultivation, distribution, processing, manufacturing, testing); and
Cannabis dispensary outside all sensitive use buffers.
2. Conditional Use Permit - Planning and Design Commission
a. Cannabis Uses: Cannabis dispensary within any sensitive use buffer, except schools.
The ordinance retains existing council member call-up for all conditional use permits for cannabis uses. Conditional use permits would continue to include early notice mailings, on-site posted notice, and public hearing notice mailings. After the Zoning Administrator or Planning and Design Commission acts on a conditional use permit at a public hearing, notice to Mayor and Councilmember in whose district the application is located would be provided notice for potential call-up to full City Council.
III. Cannabis Consumption Lounges
The attached ordinance no longer includes zoning amendments relating to cannabis consumption lounges. Instead, the City Council will consider at a future meeting an ordinance that would provide regulations for cannabis consumption lounges.
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PolicyConsiderations
Policy Considerations: When acting upon the proposed ordinance, City Code Section 17.916.010.D.1 requires consideration of two findings:
1. Finding (Section 17.916.010.D.1.a): As amended, title 17 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.
Staff Analysis: The proposed ordinance advances the following 2040 General Plan goals by allowing cannabis dispensaries in zones that include increased potential of walking and other methods of travel (e.g., C-1, C-3, and RMX), which supports opportunities in suitable locations for employment and services, and includes sensitive use buffers relating to recreational facilities, youth-oriented establishments, and uses of community investment (e.g., museums, libraries, churches, etc.).
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.
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.
• Provide additional opportunities to locate in the City’s tourism/entertainment hub and neighborhood commercial areas.
• Maintains a discretionary review process at a noticed public hearing and community member participation.
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EconomicImpacts
Economic Impacts: The Sacramento Comprehensive Cannabis Study, prepared by Economic Planning & Systems and dated March 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 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).
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EnvironmentalConsiderations
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 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 storefront dispensary 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 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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Sustainability
Sustainability: None.
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Commission/Committee Action
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.
• 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.
• On November 18, 2025, the City Council reviewed, commented, and provided further direction to staff on the desired contents of an ordinance.
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RationaleforRecommendation
Rationale for Recommendation: On May 31, 2022, the City Council directed the Planning & Design Commission to do the following:
1. Review current cannabis business zoning and sensitive uses to determine if they continue to serve the purposes for which they were adopted.
2. Consider additional zones for storefront and delivery-only dispensaries and non-volatile manufacturing (including infusion and packaging).
3. Consider storefront dispensaries as an allowed use in Residential Mixed Use (RMX) or C-3 zones.
4. Consider limiting cannabis sensitive uses to schools, youth centers, drug and alcohol
treatment centers, neighborhood and community parks, and faith-based institutions.
5. Consider reviewing suitability of mixed light cannabis uses in industrial/manufacturing zones and whether new mixed light facilities should be constructed with the ability to be re-purposed.
6. Consider a zoning and permit type for cannabis research and development (R&D) facilities.
7. Consider removing distribution from the current uses subject to a district-based square-footage cap.
On March 13, 2025, staff presented recommendations to the Planning and Design Commission responsive to the City Council’s direction. The commission’s recommendation was then forwarded to the City Council for review and direction. Following discussion and direction received at two council meetings of September 16 and November 18, 2025, staff prepared an ordinance responsive to Council direction, which is presented in this report.
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FinancialConsiderations
Financial Considerations: Not applicable.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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