Cannabis Lottery

The Commercial Cannabis Lottery application period was open from October 1, 2022, through October 31, 2022, and is now closed.

 

The 2022 Commercial Cannabis Lottery drawing was held on December 8, 2022, at 11:30 a.m. 

 

Information about all other business types can be found on the Cannabis Business Permits page.
 

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Cannabis Business Types Subject to the Lottery 

  • Storefront Retail (Dispensary)
  • Microbusiness

Applicants may apply for one or both business types. If awarded both business types through the random lottery drawing, only one business type may be pursued, with the other business type forfeited, and an alternative lottery winner will be selected. 

Applications for the Retail Storefront and Microbusiness business types will be selected from a General Pool and Equity Pool. Equity applicants must demonstrate additional requirements outlined below. Learn more about the Equity Pool on the Cannabis Business Permits page.

In accordance with Stockton Municipal Code Section 5.100.080, at no time shall there be in operation within the City more than a total of fourteen (14) Storefront Retailer cannabis businesses. Commission Use Permit (CUP) applications for Storefront Retailers shall not be accepted nor processed unless there are less than fourteen (14) active Operators Permits for Storefront Retailer cannabis business types.

 

Zoning Districts and Location Requirements

Commercial Cannabis Businesses must abide by the zoning requirements and location criteria outlined in the Stockton Municipal Code Section 16.80.195 to enter the annual lottery.

Visit the City’s Cannabis Allowable Zoning and Location Requirements page for more information.

 

Location Review and Verification

All applicants must identify the address (physical location, no PO boxes) on the lottery application where they intend to conduct the proposed cannabis business.  The location must meet all City location requirements, and applicants must submit evidence that they can use the location for the proposed cannabis business with their lottery application. 

Applicants must use the same address for their Commission Use Permit (CUP) Application if awarded the lottery; location waiver requests are no longer allowed for cannabis businesses. It is the applicant’s sole responsibility to ensure the location meets all the location requirements outlined specified in SMC 16.80.195.

Applicants will be allowed one (1) resubmittal during the lottery application review process with a different location if the originally proposed location is determined to be ineligible. Applicants will have until the Lottery Deadline, or 14 calendar days after the incomplete notice is sent, whichever is later, to submit a new location that meets all location and zoning requirements, including supporting documentation confirming their right to occupy the location for the proposed use. Any lottery applications without a suitable location after this deadline will be denied.

If multiple lottery applications are submitted with the same address, only one application may be approved for inclusion. Lottery applications will be considered on a first-come, first-served basis based on the date received.

The Stockton Municipal Code Section 16.80.195 prohibits the establishment of storefront retail or RDC/RDM/RCM microbusinesses within 1,000 feet of one another. If multiple lottery applications are received for these cannabis business types, all qualifying lottery applications will be allowed to proceed through the lottery process. However, if multiple businesses within 1,000 feet of one another win the lottery, only one business may ultimately be granted an approved Commission Use Permit (CUP). CUP applications are processed on a first-come, first-served basis. The first business with an approved CUP will ultimately be the only business allowed within the 1,000-foot radius. 

Locations with the same street address but different suite numbers (i.e., 123 Main St. #1, 123 Main St. #2, etc.) are considered different addresses as long as City records reflect them as such. 

City staff will conduct a location review as part of the lottery application screening via internet and GIS search. The City will do a final verification of the proposed location through the CUP application process in accordance with SMC 16.80.195.

 

Lottery Application Fee

All applicants are required to submit a non-refundable lottery application fee in the amount of $200.00 as set by the City Council. Payments made by a credit card, cash, certified check, cashier’s check, or money order must be made payable to the City of Stockton. All application fees must be paid when submitting the lottery application.

 

Application Submittal Process

The lottery is limited to one application per applicant or business owner (full or partial) and location. If more than one applicant/business owner (full or partial) and location is received, only the first application received will be considered for inclusion in the lottery. All other applications will be denied. For example, if an individual owns part of two cannabis businesses, and lottery applications are submitted for both businesses, only the first application submitted will be considered for the lottery.

The following procedure outlines the application submittal and evaluation process.

Submittal Requirements

Applicants must complete and submit all required application materials via the City of Stockton’s permitting portal or in person at the Permit Center. The application must include all documents mentioned in the Application Submittal Checklist Section below.

 

Application Submittal Checklist

All applicants must submit a complete Commercial Cannabis Business Lottery Application and pay the associated fee of $200. Applications failing to submit any of the following will be determined incomplete unless otherwise noted. Incomplete applications will be removed from the review and selection process.

 

All applicants must submit a completed Commercial Cannabis Business Lottery Application, including:

  1. Proof of Business Establishment/Ownership Structure: Documents verifying that a business organization has been established, including the name, email addresses, and ownership percentages of each owner. Acceptable documents include any of the following: Articles of Incorporation, Bylaws, or Organization, Certificate of Formation and Operating Agreement, Statement of Partnership, Sole Proprietorship Form (PDF), or any other official organizational document, such as Collectives, Co-Operatives, or Non-Profits that clearly shows the structure of the business and all owner(s), including ownership share/percentage.
  2. Authorization to Use Proposed Location: A physical address (location) that meets all City zoning/locational requirements in SMC 16.80.195 and authorization to use the location. Acceptable documents include any of the following: a Grant Deed confirming the applicant owns the subject property, a letter from the landlord or authorized owner representative confirming the applicant has the right to utilize the property for the stated business, a Letter of Intent or a lease agreement, or other documentation verifying the applicant’s claim to use the property for the purpose of conducting a commercial cannabis business.

 

Equity Applicants

In addition to submitting the above documents, equity applicants must demonstrate and attach proof of the following additional requirements:

  1. Greater than 50% (fifty percent) of business ownership; and
  2. Five (5) Years of Stockton Residency; and
  3. Disadvantaged Area Residency: Live in either designated SB 535 disadvantaged area; OR live in the Kelley Drive neighborhood as defined by the City Council; OR demonstrate low-income status — defined as household income that is at or below 80%of area median income qualified by US Department of Housing and Urban Development (HUD).

Acceptable documents that demonstrate the above are:

1. Five (5) Years of Stockton Residency: The following documents may be submitted to substantiate five (5) years of residency:

      • Utility bills such as electric, water, phone, etc., in the applicant’s name, 1 (one) bill per calendar year
      • Residential lease agreement(s) or other written verification in the applicant’s name from a landlord or property manager, confirming five (5) years of residency

2. Disadvantaged Area Residency: The following documents may be submitted to substantiate SB 535 Disadvantaged Area or Kelley Drive neighborhood residency:

      • Residential lease agreement(s) or other written verification from a landlord or property manager in the applicant's name
      • Utility billing statement(s) within the last 30 days
      • Driver’s License, California Identification Card, US Passport, or equivalent

3. Low-Income Status: Please schedule an appointment with the Community Development Department by emailing CannabisLottery@stocktonca.gov for an in-person review of qualifying low-income documentation.

  

Application Review Process

Following application submittal, City staff will review and evaluate all applications for completeness and satisfaction of minimum criteria. Incomplete applications and applications that do not satisfy minimum criteria will be deemed ineligible and will not be included in the lottery selection process. Before submitting your application, review the Stockton Municipal Code in its entirety to ensure compliance with the approved regulations.

Approved applicants will be entered in the random lottery drawing, which will be conducted during regular business hours. The City of Stockton will announce the location, date, and time at least two weeks before conducting the lottery drawing. The lottery drawing details will be emailed to approved applicants and persons who have self-registered to receive cannabis lottery updates. The information will be posted on this website and announced through the City’s social media sites.

  

Lottery Results and Notifications to Applicants 

Results of the lottery drawing will be available immediately to those persons attending the lottery drawing in person. The City will also notify the applicants included in the lottery and post the lottery winners on this page.

 

Lottery Winner’s Right to Submit CUP Application

Lottery winners are awarded the right to submit one (1) CUP application for the commercial cannabis business type from their lottery award. All CUP applications must be submitted to the City, including all associated application fees paid, within 90 calendar days of the notification of winning the cannabis commercial lottery. No extensions are allowed. Nonsubmittal within the 90-day timeframe shall be grounds for revocation of lottery winner status per SMC 16.80.195 (K)(5)(iv).

 

 

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This City of Stockton web page last reviewed on --- 12/9/2022