Commercial Cannabis

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While California legalized cannabis (marijuana) with the passage of Proposition 64 in 2016, it is up to each municipality to decide if and how commercial cannabis retail, manufacturing, cultivation, events, and testing should be conducted in their communities. To date, the City of Monterey has not allowed for commercial cannabis retail, manufacturing, or cultivation. In our region, the cities of Seaside, Del Rey Oaks, and Marina, and the County of Monterey (unincorporated areas of Carmel, Big Sur, Moss Landing, et al.) have allowed commercial cannabis operations. In 2020, the City of Monterey began to consider a change in policy that

While California legalized cannabis (marijuana) with the passage of Proposition 64 in 2016, it is up to each municipality to decide if and how commercial cannabis retail, manufacturing, cultivation, events, and testing should be conducted in their communities. To date, the City of Monterey has not allowed for commercial cannabis retail, manufacturing, or cultivation. In our region, the cities of Seaside, Del Rey Oaks, and Marina, and the County of Monterey (unincorporated areas of Carmel, Big Sur, Moss Landing, et al.) have allowed commercial cannabis operations. In 2020, the City of Monterey began to consider a change in policy that could allow commercial cannabis activity.

At the December 1, 2020 City Council Meeting, staff provided a Roadmap to Cannabis, with the goal of "Getting it Right the First Time." The sections and links on this page provide an outline for commercial cannabis in the City of Monterey and are based on the road map foundation.

On December 15, 2020, the City Council passed a new ordinance amending the City Code to allow agricultural testing laboratories (including cannabis testing) as a conditionally permitted use in the I-R Zoning District. Basically, this will allow prospective testing laboratories to apply for a conditional use permit for cannabis testing labs. The City Planning Commission reviews use permits through a public hearing process that includes public noticing and meetings. This new law is effective on January 14, 2021.

For more background on California Cannabis Legislation, please visit the California Cannabis Portal at https://cannabis.ca.gov/ While the legislation begins at the state level, each City has the opportunity to enact its own Cannabis laws and regulations based on many factors, including what's the best for a particular community as a whole. The City of Monterey began this process in 2018.

  • City Council Approves Project Description for Cannabis Businesses and Temporary Cannabis Events

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    At the June 6, 2023 City Council meeting, City Council with a 4-1 vote, approved (with one change) the project description for cannabis businesses and temporary cannabis events. The one change is regarding the number of temporary cannabis event permits that may be issued. Per the draft ordinance on page 7, item C7, "No more than five temporary cannabis event permits may be issued by the city
    per calendar year. Two of the five event permits shall be designated to occur in connection with the California Roots Festival and the Rebels and Renegades Music Festival. The remaining three permits shall not be for more than one day each."
    Council changed this by removing the additional three permits, however the two designated events were approved, California Roots Festival and the Rebels and Renegades Music Festival. Both events will have to apply for the permit once that process is open.

    The agenda report for last evening's meeting is posted on isearchmonterey.org at https://isearchmonterey.org/OnBaseAgendaOnline/Documents/ViewDocument/AGENDA%20REPORT.DOC.pdf?meetingId=5429&documentType=Agenda&itemId=38190&publishId=24046&isSection=false. The meeting video is set at the 6:26:56 timestamp when this item was discussed.


  • Update Cannabis Roadmap Timeline

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    Here is an updated Cannabis Roadmap Timeline dates, posted May 2, 2023.

  • City Council May 2, 2023 to Discuss Description for Cannabis Businesses

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    During the 7:00 pm session of the May 2, 2023 City Council meeting, the Monterey City Council will discuss the approval of the project description for Cannabis businesses so that the Community Development Department can start Environmental Review under the California Environmental Quality Act (CEQA).

    This item is listed as #7 on the May 2, 2023 City Council Agenda.


  • Updated Cannabis Roadmap Timeline

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    Here's an updated Cannabis Roadmap Timeline, posted August 24, 2022.

  • Measure on the November 8, 2022 Ballot

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    On June 29, 2022, the Council adopted Resolution No. 22-097 C.S. placing a ballot measure on the November 8, 2022 ballot. The ballot measure will ask the voters: Cannabis Business License Tax. Shall the measure to impose an annual cannabis (marijuana) business license tax of up to 8% of gross receipts from retail businesses, 2% of gross receipts from testing laboratories, and 6% of gross receipts from other cannabis businesses, with an additional tax on highly potent products, generating about $604,000 to $1.3 million a year, with all funds staying local and subject to audit, and effective until repealed by voters, be adopted?

    Full Text of the Proposed Ordinance
    City Attorney's Impartial Analysis
    No primary arguments for or against the measure were received.

    Visit monterey.org/cityclerk for more information.

  • City Council Passes Resolution to Include a Cannabis Tax Measure in the November Election

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    Update on July 25, 2022: Resolution 22-097 at the July 19, 2022 City Council Meeting. This Resolution amended and reinstated Resolution 22-087 to revise the ballot measure questions to reflect the maximum tax rates the City can impose on commercial cannabis activity. READ THE FULL RESOLUTION

    Ballot Measure Language: Cannabis Business License Tax. Shall the measure to impose an annual cannabis (marijuana) business license tax of up to 8% of gross receipts from retail businesses, 2% of gross receipts from testing laboratories, and 6% of gross receipts from other cannabis businesses, with an additional tax on highly potent products, generating about $604,000 to $1.3 million a year, with all funds staying local and subject to audit, and effective until repealed by voters, be adopted?

    Staff is now working on a regulation ordinance that will be up for review next.


    Resolution 22-087 was passed by the City Council at the June 29, 2022 City Council Meeting. The July 19, 2022 City Council will also have a Cannabis item on the agenda to finalize the wording for the ballot measure. The Agenda Report for the July 19 Council Meeting will be posted at least 24 hours prior to the meeting.

  • Council to Consider Cannabis Tax Measure for November 2022 Ballot

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    At its meeting on June 29, 2022 at 7 p.m., the Monterey City Council will consider a Cannabis Tax Measure for the November 2022 General Election for Monterey citizens to consider.

    If voters approve the proposed measure, cannabis retail businesses would pay an initial tax of 4%, cannabis testing lab businesses would pay 1%, and all other cannabis businesses would pay 6%. The measure would allow the City Council to increase the tax to up to 8% for cannabis retail businesses, 2% for testing laboratories, and 8% for all other businesses. In addition to these tax rates, the measure also allows higher taxes on cannabis-infused beverages containing natural or artificial sweeteners and on high potency products (those with more than 17% THC) to discourage products with public health risks.

    The proposed rates are mostly aligned with other cannabis retail tax rates in the region which range from 4.5% in unincorporated Monterey County to 6% in Santa Cruz County. Some cities, such as Seaside, have voter-approved ordinances authorizing a cannabis retail tax of up to 10%, with a lower rate adopted by City ordinance.

    For a copy of the agenda report and recommendation, please visit: https://isearchmonterey.org/OnBaseAgendaOnline/Meetings/ViewMeeting?id=5142&doctype=1


  • Update from Monterey City Council Meeting//Dec. 21, 2021

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    The Monterey City Council received a commercial cannabis update at the Dec. 21 Council Meeting, and voted to approve staff recommendation to:

    • Direct staff to develop regulations allowing no more than three (3) retail permits (one each in Downtown, Lighthouse, Cannery Row)
    • Direct staff to prepare documents and efforts to regulate up to three cannabis retail businesses (Operating or Development Agreement)
    • Direct staff to research and come back to Council to consider a potential cannabis retail tax for the November 2022 election

    You can watch the meeting playback on YouTube at https://youtu.be/gjVffQTklQM?t=3119 and view the presentation in PDF.

    Thank you for your interest and participation.

  • Cannabis Update at the December 21, 2022 4 PM City Council Meeting

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    Item 10. Direction to Staff to Develop a Regulatory Ordinance that Allows Three Retail Cannabis Permits in the City and Receive an Update on Step 3 Elements of the Commercial Cannabis Roadmap, is on the Tuesday, December 21, 4:00 p.m. City Council Agenda. Meeting Agenda | Full Agenda Report

    The meeting agenda also provides details on how to participate in the meeting. This meeting is hybrid, so participation can be in-person or online.

    Here's the updated timeline.



  • Commercial Cannabis Update - Fall 2021

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    At its meeting on August 17, 2021, the Monterey City Council has expressed their initial support for commercial cannabis.

    Staff has been directed to move forward with the Cannabis Roadmap, which includes consideration of as few as one and as many as three cannabis retailers total in the City of Monterey, located in the downtown (except Alvarado Street), Lighthouse District, and Cannery Row Business District (except Cannery Row itself). Council also stated that it would consider cannabis retail operations on Cannery Row and at the Monterey County Fairgrounds at some point in the future. The Council expressed an interest in maintaining a State standard of 600 feet buffer zones around schools, day care centers, and youth centers.

    Staff is now working on environmental review and conducting additional research on cannabis retail selection processes. This is an in-depth process that will require significant staff time, among other City Council priorities that affect the Community Development Department, which includes affordable housing, sea level rise adaptation, and more.

    To watch the latest City Council Meeting on the topic, please view the video below.


Page last updated: 06 Sep 2023, 09:22 AM