Santa Monica is moving forward with a comprehensive cannabis ordinance that would allow retail marijuana sales throughout the city’s commercial districts while establishing a social equity program to benefit communities most affected by decades of cannabis criminalization.
The proposed ordinance, which came before the Planning Commission for a public hearing, would make cannabis retailers a permitted use in all non-residential zoning districts, eliminating the discretionary review process currently required for other businesses like liquor stores.
“Council is very, very clear for this particular use. They do not want any discretion review. So it’d be essentially a permitted use, you know, that needs to meet certain standards,” said Planning Manager Jing Yeo.
Under the proposed regulations, cannabis retailers must maintain a 300-foot buffer from other cannabis businesses and cannot operate on the same city block as another cannabis store. Additionally, a 600-foot buffer is required from sensitive sites including schools, youth centers and state-licensed day care facilities.
The ordinance builds on interim regulations adopted in November 2023 that allowed the city’s two existing medical marijuana dispensaries on Wilshire Boulevard to begin selling adult-use cannabis to customers 21 and older.
A significant component of the ordinance focuses on addressing what officials call the disproportionate impact of cannabis criminalization on minority communities, particularly in the Pico neighborhood.
The proposed social equity program would prioritize individuals who meet specific eligibility criteria: documented cannabis arrests or convictions, household income below 80% of the Area Median Income, and residency in Santa Monica or disproportionately impacted areas.
Planning Commissioner Nina Fresco suggested expanding access to the program.
“I would suggest, even if we’re going to limit this in a cannabis way, maybe they would consider that people would only need to meet two out of three of those requirements,” she said.
The equity program emerged from a $40,000 state grant that funded a comprehensive assessment documenting how cannabis enforcement has historically burdened areas showing signs of socioeconomic disadvantage. The assessment found that cannabis prohibition has not been enforced uniformly across the city but has instead disproportionately affected areas with clear signs of socio-economic disadvantage.
“The argument here is that the war on drugs had a disproportionate impact on certain people, and the reason that people have had their lives literally ruined by convictions related to cannabis use,” explained Commissioner Shawn Landres. “And so the idea is to create an opportunity for repair, for restoration.”
Qualified equity applicants would receive priority processing for permits, potential fee waivers, and connections to business development resources. The city also plans to require cannabis businesses to hire a designated percentage of employees from equity-eligible populations.
The program includes plans for community reinvestment, dedicating a percentage of local cannabis tax revenue to areas most affected by past enforcement. Officials view this as an opportunity for restoration and repair as cannabis becomes legalized.
If the city secures additional state funding of up to $500,000 through the California Cannabis Equity Grants Program, the program could expand to offer direct financial assistance including startup grants of $5,000 to $25,000 and lease subsidies for compliant locations.
Some commissioners expressed interest in expanding support beyond cannabis businesses. “Why wouldn’t we give these types of benefits of streamlined permitting, reducing fees to all small businesses, for people living here in Santa Monica?” asked Commissioner Josh Hamilton.
Commissioner Fresco added: “Why would we only help people who are trying to start small businesses and lift themselves up that way, to start only cannabis businesses? Wouldn’t somebody who wants to start a bakery [deserve] the same kinds of incentives if they were from a community that had, you know, suffered from higher rates of incarceration and higher rates of poverty because of racism?”
The ordinance initially focuses only on retail sales, with other cannabis-related uses such as consumption lounges potentially following in future phases based on the performance of retail operations and community demand.
“To be clear, this ordinance is just allowing the retail sales of it. I know there’s interest there wasn’t just from the Council on like, consumption lounges... That’s not what this ordinance allows quite yet that’s going to need some additional development,” Yeo clarified.
City staff report observing no negative impacts from existing cannabis stores, describing them as well-run and secure operations with strong community support from residents who appreciate having the service available locally.
“We actually already have two that are operating in the city. I don’t believe we have heard any complaints, you know, from any of them. I mean, actually, a lot of support from residents. We appreciate having that service,” Yeo noted.
The proposed zoning changes would affect multiple districts including Downtown, Mixed-Use and Commercial Districts, Bergamot Districts, Employment Districts, and the Oceanfront District.
Cannabis retailers would be subject to additional operating requirements and security measures detailed in separate municipal code sections, most of which align with existing state cannabis regulations.
The Planning Commission’s recommendation will advance to the City Council for final consideration, with implementation dependent on adoption of the zoning amendments and accompanying regulatory framework.
maaz@smdp.com