Cannabis Business Permits

Related Information

The City of Stockton is accepting applications for commercial cannabis businesses.

Applications – Delivery, Non-Volatile Manufacturer, Distribution, and Testing Lab

There is no limit on the number of permits for Delivery (Non-Storefront Retail), Non-Volatile Manufacturer, Distribution and Testing Lab businesses. Interested parties may apply beginning April 4, 2019.

Applications – Retail Storefront, Cultivation, Volatile Manufacturer, and Microbusiness

The City will be issuing two new permits on an annual basis, using a lottery system for each of these business types:

Retail Storefront - Dispensary
Cultivation
Volatile Manufacturer
Microbusiness

Applications for these permits will be accepted for General Pool and Equity Pool each year. Four of the annual permits issued – one per business type – will be reserved for an Equity Applicant. See “Equity Program” below.

For questions about the Commercial Cannabis Lottery, please contact us at CannabisLottery@stocktonca.gov.

Previous Lottery Winners

2019 Lottery Winners

Application and Permitting Process

Each applicant is responsible for reviewing the Stockton Municipal Code and submitting a complete application compliant with all laws and regulations.

Cannabis Business Use Permit Guide - Flowchart and information about the application and permit process.
Cannabis Business Definitions - Definitions for Commercial Cannabis Businesses from the Stockton Municipal Code and the State of California Business and Professions Code.
Cannabis Business Frequently Asked Questions - Frequently Asked Questions related to the Commercial Cannabis Program, Annual Lottery, and Permitting Process.

To start a cannabis business in Stockton, the City requires these permits:

Land Use Permit

Provides authorization for land use and location requirements
Issued by the Community Development Department
Planning Application (Commission Use Permit and Administrative Use Permit)

Business License

Required for all businesses within the City of Stockton
Issued by the Administrative Services Department, Business Licensing Division
Business License Application

Operators Permit

Required for the business operator
Issued and approved by Stockton Police Department
Delivery (Retail, Non-Storefront) Security Guidelines
Operators Permit Application

Fees

The Annual Fee Schedule for FY 2020-21 has been adopted.

Annual Fee Schedule FY 2020-21 - 134 page PDF

Section F-1: Page 26 of PDF
Section F-34: Page 59 of PDF
Section F-72: Page 97 of PDF

Resolution Adopted March 5, 2019, Amending Fees

New fees added by Resolution
Permit to Operate and Permit to Operate Renewal amended to $16,640

Equity Program

The City will issue half of the permits for Retail Storefront - Dispensary, Cultivation, Volatile Manufacturer and Microbusiness to Equity Applicants. To qualify as an Equity Applicant:

More than 50% of ownership must be a Stockton resident and meet one of these criteria:
- Minority Business Enterprise (MBE);
- Women’s Business Enterprise (WBE);
- Live in one of Stockton, California Opportunity Zones;
- Live in an SB 535 Disadvantaged Area; or
- Live in a HUD-designated Area.
Links to websites for these organizations can be found in External Links below.

Workforce Diversity Program

The Workforce Diversity Program is a voluntary program for Commercial Cannabis Businesses. A business will be able to apply for the program during the business license application process and annual business license renewal process.

Commercial Cannabis Businesses must meet a 50% diverse workforce requirement during the time of application of the business license or at the time of renewal.

To qualify, at least 50% of the business's employees must reside within the SB 535 Disadvantaged Area of the City of Stockton boundaries or reside in the Kelley Drive neighborhood at the time of business license application or renewal. Kelley Drive Neighborhood addresses can be found here.

If the threshold is met, the Commercial Cannabis Business will be provided with a 50% reduction of the total amount due in taxes based on estimated gross receipts provided at the time of renewal of the business license.
Existing Commercial Cannabis Businesses will be able to participate in the voluntary program at the time of their annual business license renewal.

For questions relating to the Workforce Diversity Incentive Program, contact us at CannabisReg@stocktonca.gov.

Commercial Cannabis Business Tax Rates

Operators are required to pay a Commercial Cannabis Business Tax based on the revenue received.

As of August 15, 2019, the rates are:

Storefront Retail (Dispensary) / Non-Storefront Retail (Delivery) - 5%
Distribution - 1%
Manufacturing (Volatile and Non-Volatile) - 3%
Cultivation - 5%
Testing - 0%
Microbusiness - 5%

Cannabis Temporary Event Permits

Cannabis Temporary Events occur in designated venues identified in SMC 12.72.380 which includes the sale and on-site consumption of cannabis products. Cannabis Temporary Events can be applied for using the Special Events Permit through Community Services starting July 23, 2020. For information on Cannabis Temporary Events, visit the Community Services Special Events website.

Stockton Municipal Code Sections for Commercial Cannabis Businesses

There are several sections within the Stockton Municipal Code on Commercial Cannabis Businesses.

SMC Title 5 - Chapter 5.98, 5.99, and 5.100
Development Code Title 16 - Chapter 16.20, Section 16.20.020; Chapter 16.64, Section 16.64.040; Chapter 16.80, Section 16.80.195; and Chapter 16.240, Section 16.240.020

The most recent changes were approved on July 17, 2019, and go into effect on August 15, 2019.