Santa Monica City Council Approves Process to Select Two Medicinal Cannabis Retailers and Light Cannabis Manufacturing

October 11, 2017 10:05 AM

SANTA MONICA, Calif. – At its meeting last night, the Santa Monica City Council unanimously approved a process to select two medicinal cannabis retailers as well as light manufacturing of cannabis products in select Santa Monica locations. Council also approved an Interim Zoning Ordinance to bring Santa Monica zoning for cannabis businesses into alignment with State law. The ordinance postpones commercial adult-use activities.

“We have been in a holding pattern as the State has worked through a constantly evolving regulatory environment,” said Mayor Ted Winterer. “This ordinance is a thoughtful and tempered step that creates a pathway for medicinal cannabis businesses to open while the state solidifies its system for commercial adult-use.”

Here are specifics of the adopted ordinance:

Two medicinal retailers

• There are three possible locations for the two medicinal retailers:

  1. Wilshire Blvd. between Lincoln Blvd. and Centinela Ave. 

  2. Santa Monica Blvd. between Lincoln Blvd. and 20th St. 

  3. Santa Monica Blvd. between 23rd St. and Centinela Ave. 

• The selection process will start with a Request for Applications, which would require interested businesses to submit financials, a business plan, and past experience. More information on this is on page 12 of the staff report.

• An evaluation committee with City of Santa Monica staff and non-City staff will review applications. This committee will be selected soon.

• The retailer selection process is expected to conclude by spring 2018.

• Retail permits will allow for limited cultivation.

Permitting fees and taxes

• Council adopted two permitting fees:

  1. An annual permit fee for medicinal cannabis retailers of $1,822.

  2. An annual permit fee for light manufacturing of cannabis products of $99.

• Council voted to explore future tax options on cannabis activities with a focus on adult-use. 

Light Manufacturing

• Light manufacturing of products like cannabis-based lotions or edibles without a retail storefront will be allowed through the adopted Interim Zoning Ordinance in the Industrial Conservation zone or, with a conditional use permit, the Office Campus (OC) zone.

The statewide regulatory environment is evolving rapidly. Santa Monica will enforce laws locally that are governed by the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) adopted in June 2017. MAUCRSA establishes regulations for the cannabis industry in California and consolidates the regulatory structure for medicinal and adult adult-use. The State will begin issuing licenses for commercial cannabis activities January 1, 2018.

More Information 

California SB 94 >

October 10 staff report >

Media Contact

Constance Farrell
Communications & Public Information Manager
Constance.Farrell@santamonica.gov

Departments

City Manager's Office

More Information

http://santamonicacityca.iqm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetingID=1103&MediaPosition=&ID=2474&CssClass=
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB94