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City of Chico

City of Chico

Commercial Cannabis Business Program



All commercial cannabis uses are presently unlawful in Chico and are not allowed unless a permit has been obtained from the State of California Department of Cannabis Control and the City of Chico. The City adopted a set of ordinances and resolutions which outline the rules and regulations, with each commercial cannabis use adhering to specific conditions and requirements, including limitations on where such uses can be located.

Please visit our online Chico Municipal Code for up to date information - hyperlinks are listed below.


Chapter 5R.42 (Commercial Cannabis Businesses - Application, Review, Scoring and Selection Process)

Chapter 19.75 (Cannabis Regulations)

Chapter 5.42 (Commercial Cannabis Businesses)




Commercial Cannabis uses are allowed in five Zoning Districts, subject to buffer zones.

Permit Information


All Commercial Cannabis uses require 1) a Commercial Cannabis business permit issued by the City of Chico, and 2) a cannabis permit issued by the State of California. All uses also require a zoning clearance from the City of Chico’s Planning Division.



Is the City Currently Accepting Commercial Cannabis Applications?

The City is not accepting commercial cannabis applications for any cannabis business types at this time.

What Types of Businesses Are Allowed?

The following types of commercial cannabis businesses are allowed:
  • Testing Laboratory
  • Distributor
  • Manufacturer
  • Retailer - Delivery Only
  • Retailer - Storefront
The following types of commercial cannabis businesses are not allowed:
  • Cultivation
  • Microbusiness

Does the City's Commercial Cannabis Regulations Affect Personal Cultivation?

The Commercial Cannabis regulations do not affect existing personal cultivation requirements under Title 19.75.

Which State of California Agency Issues Licenses for Cannabis Businesses?

The Department of Cannabis Control is responsible for licensing retailers, distributors, manufacturers, testing labs, and microbusinesses.
Following the passage of Proposition 64, the State of California established an extensive body of regulations for commercial cannabis activity in the State. First, the State Legislature approved the Medicinal and Adult Use Cannabis Regulation and Safety Act to create a licensing and regulatory system for commercial cannabis business. The state’s cannabis licensing agencies, the Bureau of Cannabis Control, the California Department of Public Health and the California Department of Food and Agriculture, promulgated a series of emergency regulations for commercial cannabis activity. The licensing agencies were consolidated into one agency in 2021 now known as the Department of Cannabis Control (DCC).

Can I Operate a Cannabis Business with Only a State or City License?

No. A person must obtain a license from both the City and the State before operating a cannabis business.

How Many Licenses Were Awarded?

The following three (3) commercial cannabis permits for retail storefront dispensaries were awarded to the following businesses:
Sweet Flower Chico, LLC
Responsible and Compliant Retail Chico, LLC (dba, Embarc Chico)
Chico Flagship, LLC (dba, Oregrown)
The following five (5) commercial cannabis permits for manufacturing/distribution were awarded to the following businesses:
Chico CA Cannabis Company
Area 1075, LLC
Rincon Distributors, LLC
Stay Positive Investments, Inc.
City manager's office

City manager's office

411 Main Street

P.O. Box 3420

Chico, CA 95927



Hope Ithurburn, Management Analyst

O: (530) 896.7209


M-F: 8am - 5pm