SR 11-14-2023 5L
City Council
Report
City Council Meeting: November 14, 2023
Agenda Item: 5.L
1 of 2
To: Mayor and City Council
From: Douglas Sloan, City Attorney, City Attorney's Office, Administration
Subject: Second Reading and Adoption of an Ordinance amending Section 6.203.010
of the Santa Monica Municipal Code to allow medicinal cannabis retailers with
medicinal cannabis permits issued before October 10, 2023, to deliver,
cultivate, and sell adult-use cannabis and adult-use cannabis products to
persons 21 years of age and over, subject to Santa Monica Municipal Code
Section 9.31.185
Recommended Action
Staff recommends that the City Council adopt the attached Ordinance.
Executive Summary
At its meeting on October 24, 2023, the City Council introduced for first reading an
Ordinance amending Section 6.203.010 of the Santa Monica Municipal Code to allow
medicinal cannabis retailers with medicinal cannabis permits issued before October 10,
2023, to deliver, cultivate, and sell adult-use cannabis and adult-use cannabis products
to persons 21 years of age and over, subject to Santa Monica Municipal Code Section
9.31.185. The ordinance is now presented to the City Council for adoption.
5.L
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Prepared By: Bradley Michaud, Principal Legal Analyst
Approved
Forwarded to Council
Attachments:
A. ORD-Cannabis Amending Section 6.203.010 2d
B. Written Comments
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City Council Meeting: November 14, 2023 Santa Monica, California
ORDINANCE NUMBER _____ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AMENDING SECTION 6.203.010 OF THE SANTA MONICA MUNICIPAL CODE TO
ALLOW MEDICINAL CANNABIS RETAILERS WITH MEDICINAL CANNABIS
PERMITS ISSUED BEFORE OCTOBER 10, 2023 TO DELIVER, CULTIVATE, AND
SELL ADULT-USE CANNABIS OR ADULT-USE CANNABIS PRODUCTS TO
PERSONS 21 YEARS OF AGE AND OVER, SUBJECT TO SANTA MONICA
MUNICIPAL CODE SECTION 9.31.185
WHEREAS, the State of California has a long history of regulating cannabis uses
within the State; and
WHEREAS, in 1996, California voters approved Proposition 215 (codified at Health
and Safety Code section 11362.5 and titled the “Compassionate Use Act of 1996”), which
provides criminal immunity for patients and primary caregivers for the cultivation and
possession of cannabis if a doctor has recommended the cannabis for medical purposes;
and
WHEREAS, in 2004, Senate Bill 420 was enacted (codified at Health and Safety
Code section 11362.7 et seq. and titled the “Medical Marijuana Program Act”) to clarify
the scope of the Compassionate Use Act of 1996; and
WHEREAS, the Medical Marijuana Program Act allows cities and other governing
bodies to adopt and enforce laws consistent with its provisions; and
WHEREAS, in 2015, Assembly Bills 243 and 266 and Senate Bill 643 were
enacted (codified at Business and Professions Code section 19300 et seq. and titled the
“Medical Marijuana Regulation and Safety Act”) and provided for enhanced statewide
marijuana regulations; and
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Packet Pg. 128 Attachment: ORD-Cannabis Amending Section 6.203.010 2d (6124 : Cannabis Section 6.203.010 - Second Reading)
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WHEREAS, In November 2016, voters approved Proposition 64, the Adult Use of
Marijuana Act (“AUMA”), which allows adults 21 years of age or older to legally grow,
possess, and use cannabis for nonmedicinal purposes, with certain restrictions; and
WHEREAS, beginning on January 1, 2018, AUMA authorizes the sale and
distribution of cannabis for nonmedicinal purposes through a licensed business; and
WHEREAS, in 2017, the State legislature enacted Senate Bill 94 which created
the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) which
establishes a robust set of regulations for the medicinal and adult use cannabis markets,
aligns all permit types, and authorizes certain state agencies to establish rules governing
cannabis operations and to implement the law; and
WHEREAS, MAUCRSA continues to preserve local control over cannabis-related
uses by: (1) requiring medicinal cannabis businesses to obtain both a state license and a
local license or permit, if required, to operate legally in California, (2) terminating the ability
of a medicinal cannabis business to operate if its local license or permit is terminated, (3)
continuing to authorize local governments to enforce local cannabis-related laws, (4)
providing for penalties for unlicensed activities, and (5) expressly protecting local
licensing practices, zoning and business regulation laws, and local actions taken under
the constitutional police power; and
WHEREAS, consistent with State actions, the City Council, when adopting its
comprehensive update to its Zoning Ordinance in 2015, contemplated authorizing two
medicinal cannabis retailers within the City to serve local needs; and
WHEREAS, the City has commenced a prolonged medicinal cannabis retailer
selection process and issued two permits for the operation of a medicinal cannabis
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Packet Pg. 129 Attachment: ORD-Cannabis Amending Section 6.203.010 2d (6124 : Cannabis Section 6.203.010 - Second Reading)
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retailers in the City; and
WHEREAS, the City has an important governmental interest in maintaining a
thriving business community and protecting the health, safety, and economic welfare of
its citizens and businesses; and
WHEREAS, on May 10, 2022, City Council requested that the City Manager
schedule a study session as soon as practicable regarding whether to allow for the sale
of nonmedicinal cannabis in the City of Santa Monica; and
WHEREAS, on July 26, 2022, in line with potential economic recovery efforts, the
City Council voted to place a cannabis business license tax measure (Measure HMP) on
the November 2022 ballot, imposing a tax on all commercial cannabis activities; and
WHEREAS, in the November 2022 election, the voters approved Measure HMP;
and
WHEREAS, on June 13, 2023, City Council held a discussion session where it: (1)
considered key policy considerations for allowing adult-use cannabis businesses and
other non-retail cannabis business types within the City of Santa Moncia; (2) discussed
options for allowing adult-use cannabis sales and associated regulatory restrictions as
may be appropriate; and (3) provided direction to staff on bringing back changes to the
Municipal Code to allow for adult-use cannabis retail businesses and non-retail cannabis
business types within the City; and
WHEREAS, at the June 13, 2023, study session, City Council approved allowing
the previously approved medicinal cannabis retailers to also sell, cultivate, and deliver
adult-use cannabis while the permanent adult-use cannabis updates are pending; and
WHEREAS, Section 6.203.010 of the Santa Monica Municipal Code currently
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Packet Pg. 130 Attachment: ORD-Cannabis Amending Section 6.203.010 2d (6124 : Cannabis Section 6.203.010 - Second Reading)
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prohibits commercial cannabis sales in the City; and
WHEREAS, the City desires to amend Section 6.203.010 of the Santa Monica
Municipal Code to allow medicinal cannabis retailers with medicinal cannabis permits
issued before October 10, 2023 to deliver, cultivate, and sell adult-use cannabis or adult-
use cannabis products to persons 21 years of age and over subject to the Santa Monica
Municipal Code Section 9.31.185.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Commercial Nonmedicinal Cannabis Uses. Santa Monica Municipal
Code Section 6.203.010 is amended as follows:
6.203.01 Commercial Nonmedicinal Cannabis Uses
a. Except as provided in subsection b, below, it shall be unlawful to undertake,
establish, operate, maintain, or permit any commercial nonmedicinal cannabis use in the
City. Except as provided in this subsection b, below, no use permit, business license,
variance, building permit, or any other entitlement, license, or permit, whether
administrative or discretionary, shall be approved or issued. The possession of a State
license for commercial nonmedicinal cannabis use shall not be sufficient to authorize the
operation of such a use within the City.
b. Notwithstanding the prohibitions set forth in subsection a, above, a
medicinal cannabis retailer that has been issued a medicinal cannabis permit pursuant to
Chapter 6.203 of the Santa Monica Municipal Code prior to October 10, 2023, and subject
to Santa Monica Municipal Code Section 9.31.185, shall be permitted to deliver, cultivate,
or sell adult-use cannabis or adult-use cannabis products, as licensed and regulated by
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Packet Pg. 131 Attachment: ORD-Cannabis Amending Section 6.203.010 2d (6124 : Cannabis Section 6.203.010 - Second Reading)
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Business and Professions Code Section 26000 et seq. and as amended from time to
time, to persons 21 years of age and over. The authority to operate under this subsection
will be limited to each annual business license term or renewal and will be subject to any
additional requirements the City may adopt by ordinance, or administrative regulations or
conditions in accordance with Santa Monica Municipal Code Section 6.200.040,
including, but not limited to, any requirements related to social equity or community
benefits.
SECTION 2. Any provision of the Santa Monica Municipal Code or any appendix
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Ordinance. The City Council hereby declares that it would have passed
this Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
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Packet Pg. 132 Attachment: ORD-Cannabis Amending Section 6.203.010 2d (6124 : Cannabis Section 6.203.010 - Second Reading)
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SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage
of this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective thirty
days after its adoption.
APPROVED AS TO FORM:
_________________________
Douglas Sloan, City Attorney
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Packet Pg. 133 Attachment: ORD-Cannabis Amending Section 6.203.010 2d (6124 : Cannabis Section 6.203.010 - Second Reading)
From:Taylor Megdal
To:councilmtgitems
Cc:Lauren Niehaus; Brian Manning
Subject:Recreational Canabis Ownership Letter of Support
Date:Monday, October 23, 2023 10:30:06 AM
Attachments:City of Santa Monica_Support for Adult-Use Sales_10.19.23 TM Signed.pdf
EXTERNAL
I respectfully submit the attached in favor of allowing the two medical licenses currently
in Santa Monica to be allowed to be adult use.
Let me know if you have any questions...
Thank you
Taylor
Taylor Megdal, Esq.PresidentThe Megdal Companies252 S. Beverly Drive, Suite #CBeverly Hills, CA 90212
Office: (310) 277-0416Fax: (310) 277-0519Cell: (310) 601-6600
ITEM 5.L. November 14, 2023
ITEM 5.L. November 14, 2023
5.L.b
Packet Pg. 134 Attachment: Written Comments (6124 : Cannabis Section 6.203.010 - Second Reading)
October 23, 2023
RE: Support for adult-use sales in the city of Santa Monica
Santa Monica City Council
1685 Main St.
Santa Monica, CA 90401
Dear Members of the Santa Monica City Council,
We are writing to express our strong support for the sale of adult-use cannabis within the city
of Santa Monica. As an established cannabis operator in the state, we have witnessed the
positive effects of responsible cannabis regulation, and believe Santa Monica has the
opportunity to benefit greatly from such a policy change.
Adult use marijuana legalization has been implemented successfully, and responsibly, in various
states across the nation. In November 2016, California citizens supported adult-use legalization,
via Prop 64. Santa Monica is poised to adopt the same.
The city has already secured two strong operators and has rules in place that will ensure that
the cannabis businesses in the city operate to the benefit of the community.
We believe that Santa Monica, with its vibrant and diverse community, is well-positioned to
launch into adult-use sales while continuing to prioritize public safety and community well-
being. By allowing adult-use sales, the city can benefit from an economic boost and ensure that
consumers have access to safe and regulated products.
Transparency and open dialogue are crucial to shaping policies that reflect the needs and values
of the residents, while ensuring a strong business environment. We appreciate the opportunity
to expand upon our originally planned business and provide both medical and adult use access
to Santa Monica citizens.
As the city has already promulgated rules for medical sales, it is imperative that those standards
remain in place. Transitioning those rules to be inclusive of adult use sales, will prime the
approved operators for success. We strongly encourage the Council to follow the existing state
regulations governing the sale of adult use cannabis, and after there has been time for
operators to implement those sales, should a change need to be made, we are committed to
bringing additional best-practice suggestions to planning and Council for consideration.
Our company is in the midst of construction and poised to open in the coming months. While
this process has been a long time coming, we are looking forward to serving the Santa Monica
community in the coming months. We will have recently paid for our building permits and are
finalizing re-designs of our floor plan layout. As soon as we have approval to proceed, we plan
ITEM 5.L. November 14, 2023
ITEM 5.L. November 14, 2023
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Packet Pg. 135 Attachment: Written Comments (6124 : Cannabis Section 6.203.010 - Second Reading)
to move quickly to become operational. Our team on the ground in the city will be focusing all
efforts on opening this store before the end Q1, 2024.
To conclude, we ask the Santa Monica City Council to consider the potential benefits of
legalizing and regulating adult-use cannabis sales within the city, with the current rules in place.
This is an opportunity to boost the local economy, promote consumer safety, and reduce the
influence and use of the illicit market.
Thank you for your time and consideration. We look forward to our continued partnership with
the city of Santa Monica.
Sincerely,
Taylor Megdal
Co-Owner, Harvest License/Location
ITEM 5.L. November 14, 2023
ITEM 5.L. November 14, 2023
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Packet Pg. 136 Attachment: Written Comments (6124 : Cannabis Section 6.203.010 - Second Reading)