The Santa Monica City Council has voted to expand the retail footprint of adult-use cannabis businesses by approving a comprehensive program allowing these establishments to operate in specified non-residential areas. According to a report by Santa Monica's official website, the move builds on a previous ordinance from 2023 that allowed existing medicinal cannabis retailers to also provide adult-use cannabis services and makes way for new retailers to enter the adult-use cannabis market.
Under the program, cannabis businesses will now be able to set up shop in several non-residential districts, including Downtown, Mixed-Use and Commercial, Bergamot, Employment, and Oceanfront districts. Nonetheless, compliance with state law is mandatory, which includes a rule to not operate a cannabis business within 600 feet of schools, youth centers, and day care centers.
As described in the official press release, this social equity component was created with extensive community input and is supported by an analysis that illustrates the historical impact of cannabis criminalization in Santa Monica. It also highlights the systemic barriers that have hindered access to the legal cannabis industry for affected communities and individuals. Details on the application process will be provided on the city’s dedicated cannabis program webpage.
In terms of taxation, the sales from adult-use cannabis products will be taxed at 4 percent of gross receipts, a rate approved by Santa Monica voters under Measure HMP with a backing of 66 percent in 2022. The tax was then raised by resolution last year. The City Council has the authority to adjust the tax, but an increase beyond 10 percent would require a vote, as per the City of Santa Monica. For those interested in Tuesday's policy decision, further information can be accessed via the staff report or the recorded meeting discussion available online.
