The new ordinance allows adult-use cannabis retailers in designated areas, including Downtown, Bergamot, and Oceanfront districts
The Santa Monica City Council on Tuesday approved a comprehensive program to expand adult-use cannabis retail in non-residential districts, building on a 2023 interim ordinance that permitted the city’s two existing medicinal cannabis retailers to sell adult-use products.
The new ordinance allows additional adult-use cannabis retailers in designated areas, including Downtown, Mixed-Use and Commercial, Bergamot, Employment, and Oceanfront districts. It updates permitting processes, operational conditions, and compliance requirements for cannabis retail and delivery businesses. In line with state law, cannabis businesses are prohibited within 600 feet of schools, youth centers, or state-licensed day care centers.
A key component of the program is a social equity initiative aimed at reducing barriers for communities disproportionately affected by past cannabis criminalization. Developed with community input and a data-driven equity assessment, the program offers benefits like application fee waivers, expedited processing, and exemptions from certain location restrictions for qualifying applicants. Eligibility prioritizes individuals with cannabis-related conviction histories, low-income status, or ties to Santa Monica.
“Cannabis legalization presents an opportunity to address past harms and create equitable access to this industry,” the city stated, referencing the program’s goal to support impacted communities through reinvestment and economic inclusion.
The program follows a 2022 voter-approved measure (HMP), which established a 4% cannabis business tax on gross receipts, adjustable up to 10% by the council without further voter approval. Tax revenues may support future community reinvestment initiatives, pending council budget decisions.
Applications for new cannabis retail permits will be available at a later date, with details to be posted on the city’s cannabis program webpage. The council also adopted resolutions to establish permit fees and a non-city-based cannabis delivery permit, aligning with state regulations.
City staff will monitor permit issuance and tax revenue to assess the program’s financial impact.
