Tracy, CA Cannabis Regulations: Dispensary Zoning (2026)

Section 10.08.3196 of the Zoning Code declares that all commercial cannabis uses are prohibited from operating in all zoning districts in the City, except for the uses the section expressly permits as conditional uses, each requiring both a City cannabis business permit under Chapter 6.36 and a conditional use permit under section 10.08.4250. Storefront retailer (dispensary) uses are permitted only in listed commercial zones, including the Tracy Hills Specific Plan's General Highway Commercial (GHC-TH) and Mixed Use Business Park (MUBP-TH) districts, the Residential Areas Specific Plan's Neighborhood Shopping (NS) and General Highway Commercial (GHC) districts, and the Industrial Areas Specific Plan's Neighborhood Shopping, Village Center, and Flex Office districts.

The section's location requirements at subsection (d) set a 600-foot buffer between any two storefront dispensaries, a 600-foot buffer from any school, day care center, or youth center measured from parcel to structure, and a 50-foot buffer from any residential zoning district, except zones that themselves permit dispensaries. Outdoor cultivation of cannabis is banned citywide as a principal, conditional, special, or accessory use under subsection (e), and personal-use cultivation must also stay indoors.

Beyond zoning, Chapter 6.36 caps how many dispensary permits the City will issue at all: section 6.36.040(b) limits new storefront retailer permits to one for every 10,000 residents, based on the most current U.S. Census Bureau or California Department of Finance population figure, though up to eleven permits may go to businesses that applied by October 15, 2020 and were awarded a permit before December 31, 2021, exempting them from the per-capita cap as long as they renew annually. Tracy is not an opt-out city: section 6.36.020 prohibits commercial cannabis activity only except as specifically authorized in the chapter, meaning permitted, zoned dispensaries are lawful.