Aiming to advance equity in Sacramento’s growing cannabis industry, the City Council this week unanimously approved the addition of three storefront dispensary permits, increasing the total allowed from 40 to 43.

The new permits will benefit participants in the City’s Cannabis Opportunity Reinvestment and Equity (CORE) program, which works to remove barriers of entry into the cannabis industry for impacted community members.

As part of these changes, the City Council recently extended the timeline to establish a dispensary for three existing CORE permit opportunities by one year. The three newly approved permits are all reserved for CORE applicants, bringing the total reserved for CORE to 14. Additionally, the eligibility window for new CORE storefront permits was extended to five years.

“Expanding the number of permits reserved for CORE participants creates more equitable opportunities for those who have historically faced barriers in the cannabis industry,” said Al Romero-Gibu, who leads the City’s Office of Cannabis Management.

The City previously capped storefront dispensary permits at 40, with 29 for non-CORE and 11 for CORE majority-owned businesses. The CORE program offers robust business training opportunities to its participants; however, only a few have been able to enter the storefront market.

Storefront dispensaries remain the most sought-after business model in the cannabis industry, Romero-Gibu said.

Following Council direction, the additional permits will be offered to the next eligible applicant on the list that resulted from the City’s Request for Qualifications in (RFQ) 2021. Of the 102 individuals on that list, 12 have received opportunities.

Selected applicants will now have five years to apply for a storefront permit and must meet the qualifications outlined in their original RFQ submission.

All cannabis businesses in Sacramento are required to pay a business tax of 4% of their gross receipts, so the three new storefronts are expected to generate additional Business Operating Tax (BOT) revenues once opened.

To learn more about local cannabis laws and regulations, visit the City’s cannabis webpage, or contact the City’s Office of Cannabis Management by email at cannabis@cityofsacramento.org, and by phone (916) 808-8955.