Cannabis Permitting Guide

What is the process?

Become familiar with State and Local Regulations

If you are interested in starting a cannabis business in San Luis Obispo County, you should become familiar with State and Local regulations. 

Cannabis Flow Chart

Take a look at our flow chart for a quick overview of the process to being an operational cannabis business.

Contact the Sheriff's Office and Planning & Building

The application process can be tedious so we are here to make things go as smooth as possible. To help us do that, contact the Sheriff's Office at [email protected] and the Planning & Building Department to schedule a Pre-Application Meeting.

Please provide at a minimum your name(s), contact information, proposed location (physical address and APN), and type(s) of cannabis business licenses proposed. We will reach out to set up a Pre-Application meeting. During the meeting we will answer any questions and review your proposed project with you. 

  • The base fee for a Pre-Application Meeting is $796.00. Please note, If an application is submitted within six months of the meeting, this fee will be credited towards the application fees. 

 

Pre-Notify Neighbors

The applicant provides a written letter to all property owners within 1,000 feet of the proposed project site informing them of the proposed project. Notify Neighbors 10 days before submitting application.

Submit Applications & Background Check

The applicant needs to complete a Planning & Building application package and schedule an intake meeting with planning staff to submit the completed application package and pay all applicable fees.

The applicant needs to schedule a Background Check and Live Scan with the Sheriff's Office, fill out the necessary forms, and pay all applicable fees. Contact [email protected] to schedule and pay Sheriff's Office fees.

  • Cultivation - Phase 1, $14,142.00 
  • Non Cultivation - Phase 1, $14,142.00 
  • Testing Facility - TBD

Apply for Business License with Tax Collector's Office

The applicant needs to complete a Cannabis Business License Application and contact the Tax Collectors Office at [email protected] or call (805) 781-5831 to schedule an appointment to begin the license process. The fee for a new business license is $44.00 per license. Every county cannabis business license is also required to pay a Cannabis Tax Compliance fee of $3,918.00 at the time of license issuance. 

  • Note: The Cannabis Tax Compliance fee is due annually at the time of license renewal, as well as $34.00 per license renewal annually. 

Initial Completeness Review

Planning & Building Department reviews the applicant's land use application package that was submitted. Parts of the application will be referred to other agencies throughout the county for their review, ensuring the application meets the associated requirements (e.g. fire department, air polution control, environmental health, public works, agriculture/weights and measures etc.)

The Sheriff's Office will review forms submitted, conduct background investigation, review live scan results, review security plan, and review operations plan. 

Accepted for Processing

The Planning & Building Department confirms the land use application, business license application, Sheriff's Office background and forms have been submitted and are completed in full. The Sheriff's Office has conducted an initial background check. The Planning & Building Department will change the staus of the application to, Accepted for Processing. 

Pre-Inspection

County Employees will contact the applicant(s) to do a Pre-Inspection at the proposed site location.

CEQA analysis report

This is project specific and does NOT apply to all cannabis projects. Refer to County CEQA Guidlines for more specifics. 

A California Environmental Quality Act (CEQA) review is completed by a third party vendor. This is to disclose to the public and decision makers of the significant environmental effects of a proposed discretionary project, through the preparation of an initial study, negative declaration, mitigated negative declaration, or environmental impact report.

Public Hearing

One or multiple public hearings can occur with different hearing bodies deciding to either approve or deny an application. 

  • Planning Department Hearing
  • Planning Commission
  • Board of Supervisors

Upon a decision by the hearing body, an appeal may be filed with the Board of Supervisors. 

Project approved by the county

The cannabis proposed project has been approved, Congratulations! Here's what to do next...

  • Contact the Sheriff's Office to pay the fee for phase 2 of your project.
    • Cultivation Phase 2, $12,311.00
    • Non-Cultivation Phase 2, $11,204.00
    • Testing Facility Phase TBD
  • Submit Required building plans and permits to Planning & Building.
  • Satisfy all of the projects Conditions of Approval.

Apply for State Licenses

The applicant applies for all applicable State licenses. Check with planning staff to determine if the proposed project is eligible for concurrent processing of State license applications prior to County approval.

**Cautionary - prior applicants have advised the state licening process can take up to six months, keep that in mind when getting close to being operational.**

Enroll in Monitoring Program

Under the County of San Luis Obispo Inland and Coastal Zone Ordinances, all cannabis activities that receive a land use permit are required to participate in a County-run monitoring program. The purpose of the monitoring program is to verify that permitted activities are conducted in compliance with conditions of approval (including environmental mitigation measures) and relevant provisions of the local ordinances and state law. San Luis Obispo County is a member of the California Cannabis Authority (CCA). The CCA is a monitoring agency for cannabis businesses operating in the unincorporated area of the county. 

Final Inspection for Approval to Operate

The Sheriff's Office and County employees will conduct an inspection at the proposed cannabis business location once it has been determined all outstanding requirements have been met. If the project is complete, permits are signed off, it is in compliance with the conditions of approval, enrolled in the monitoring program, and all fees are paid, the project will receive its business license and Approval to Operate from the County.

Is there a charge for this service?

Please refer to the Department of Planning & Building Fee Schedule for application fees.

Please refer to the Sheriff's Office Fee Schedule for cannabis fees.

When and where is this service offered?

This service is available throughout the year during regular business hours except during scheduled holidays.

Location, directions and hours of operation

Click on location name to show hours of operation, directions and phone information

Monday - Friday 8:30 AM - 3:00 PM


976 Osos Street Room 200
San Luis Obispo, CA 93408

Tel: (805) 781-5600

Fax: (805) 781-1242

Permits/Inspections: (805) 788-6602

FAQS

Yes, all commercial cannabis activities require a County business license.

No; however, there are limits on the number of cultivation sites that can receive land use permit approval.

County business licenses are valid for one (1) year from the date of issuance, unless a shorter time period is specified by the Tax Collector.

Currently, most County business licenses require a $40 application fee. Most licenses then require an annual $31 renewal fee. Every county cannabis business license is also required to pay a Cannabis Tax Compliance fee of $3,918.00 at the time of license issuance. The Cannabis Tax Compliance fee is due anually when the license is renewed. 

Common reasons that a business license for cannabis activities could be denied include lack of required land use authorization, failure to submit required paperwork, and/or failure to pass a criminal background check.

Refer to the County Cannabis Permitting Guide for a detailed layout of the process.