SANTA MONICA—On Thursday, September 11, the city of Santa Monica announced on its website that the City Council on September 9 approved a comprehensive program to allow adult-use cannabis retail businesses to open in specific non-residential areas.

The program builds on an interim zoning ordinance approved in 2023 that allowed Santa Monica’s two existing medicinal cannabis retailers to sell and deliver adult-use cannabis. Tuesday’s action expands the program by allowing new retailers in the adult-use cannabis space, as well as updating the process, permits and compliance requirements for cannabis retail and delivery businesses.

Non-residential areas include:

-Downtown Districts
-Mixed-Use and Commercial Districts
-Bergamot Districts
-Employment Districts
-Oceanfront District

In accordance with state law, the local ordinance prohibits cannabis businesses within 600 feet of schools, youth centers and day care centers licensed by the State Department of Social Services.

The Santa Monica City Council approved a social equity component to the cannabis program, allowing for lowering barriers to entry for qualifying applicants. This component was developed with community input and backed by data-driven analysis to document the impact of cannabis criminalization in Santa Monica and the systemic barriers that have prevented affected communities and individuals from accessing opportunities within the legal cannabis industry.

Applications will be available at a future date and information will be provided on the city’s cannabis program page.

The sales of adult-use cannabis products are subject to the cannabis business tax at four percent of gross receipts. The tax was approved as Measure HMP by 66 percent of Santa Monica voters in 2022 and increased by resolution in 2024. The tax rate may be adjusted by the city council but cannot exceed 10 percent without voter approval.

To view the City Council recent meeting visit: https://www.youtube.com/live/Q-YCHsgYdIE?feature=shared&t=21050.