Title
REF250038 - CANNABIS CONSUMPTION VENUE ORDINANCE
a. Conduct a public hearing to consider ordinances amending the County Code to allow Cannabis Consumption Venues for specified areas in unincorporated Monterey County; and
b. Adopt a Resolution to recommend that the Board of Supervisors take the following actions:
i. Find that adoption of the ordinance amendments is exempt pursuant to California Environmental Quality Act Guidelines Sections 15061(b)(3) and 15301; and
ii. Adopt ordinances to allow cannabis consumption as a land use in the unincorporated areas of Monterey County, including amending Chapter 20.67, Chapter 21.67, and Chapter 7.90.
Project Location: Unincorporated Monterey County
Proposed CEQA action: The adoption of these ordinance amendments is exempt pursuant to California Environmental Quality Act Sections 15061(b)(3) and 15301.
Body
RECOMMENDATION:
It is recommended that the Planning Commission:
a. Conduct a public hearing to consider ordinances amending the County Code to allow Cannabis Consumption Venues for specified areas in unincorporated Monterey County; and
b. Adopt a Resolution to recommend that the Board of Supervisors take the following actions:
i. Find that adoption of the ordinance amendments is exempt pursuant to California Environmental Quality Act Guidelines Sections 15061(b)(3) and 15301; and
ii. Adopt ordinances to allow cannabis consumption as a land use in the unincorporated areas of Monterey County, including amending Chapter 20.67, Chapter 21.67, and Chapter 7.90.
PROJECT INFORMATION:
Planning File Number: REF250038
Project Location: Countywide - limited to areas where Cannabis Retail Facilities are allowed in each
Planning Area: North County Inland, Greater Salinas, Carmel Valley Master Plan, Greater Monterey Peninsula, Toro, Central Salinas Valley, Cachagua, South County, Fort Ord Master Plan, Del Monte Forest, Big Sur Coast, and North County Coastal. Cannabis Retail Facilities are not allowed in the Carmel Area of the Coastal Zone.
SUMMARY:
The County of Monterey has current regulations that allow certain types of cannabis uses, including regulations and procedures that require a discretionary permit be obtained to operate a cannabis retail facility. The Board of Supervisors directed staff to prepare an ordinance that could allow cannabis consumption on sites that allow cannabis retail uses. In fall 2025, the Board of Supervisors’ Cannabis Committee considered preparation of such an ordinance and directed staff to prepare a draft ordinance and conduct outreach at a Planning Commission workshop.
The Planning Commission conducted a workshop on this topic in February 2026. The general direction from the Planning Commission was to proceed with allowing cannabis consumption at retail locations, allowing these venues to be open until 10 p.m., use existing state law and local regulations as much as feasible, and have a professional design a ventilation system to achieve controls that protect health.
State law provides extensive regulations related to the cannabis industry including strict controls on retail operations. Retailers are allowed to also include cannabis consumption under state law where also authorized by local ordinances (Exhibit 8). The ordinances drafted by staff are intended to provide that authority for retailers to include consumption.
County staff has drafted ordinances, amending the existing regulations for both the coastal zone and the inland areas, that would allow all existing cannabis retailers, and proposed cannabis retailers, to also include cannabis consumption on site if they can meet all the requirements in the draft ordinances. The focus on those requirements would be ventilation that ensures a safe environment for employees, customers, and the general public. For existing retail facilities that would like to add a cannabis consumption lounge, the ordinance would require that a cannabis retailer obtain a ministerial permit through the Cannabis Program annual permit and renewal process (MCC Section 7.90.040). A discretionary (planning) permit would be required to potentially add outdoor cannabis consumption to an existing retailer where the circumstances warrant. Additionally, a cannabis retailer may need to obtain a discretionary permit if additional parcels are necessary to establish a cannabis consumption venue associated with an existing dispensary. A new proposed retailer would require a discretionary permit, pursuant to our existing regulations, whether they would include a cannabis lounge or not. As staff discussed during the workshop, because adding a lounge to an existing retailer would be a subsequent ministerial action, the consideration of a discretionary permit for a new cannabis retail facility will need to anticipate that potential when that permit is considered at a public hearing. In addition, any new construction to add structures to expand the footprint of the retailer or to add a consumption area would follow existing regulations to determine if a ministerial or discretionary permit would be required for such construction.
The draft ordinances amending MCC Titles 20 and 21 and Chapter 7.90 have the following key features:
• All cannabis consumption venues would need to obtain a permit from the Cannabis Program and meet the same distance requirements from sensitive uses as cannabis retail facilities;
• The Cannabis Program permit would continue to be a ministerial process;
• Any venue that allows smoking would have to provide an engineered ventilation system to protect the health of the public, including the facility’s customers and employees;
• Adding a cannabis consumption venue that includes smoking to a retail facility as an outdoor use or under enumerated circumstances would require obtaining a discretionary land use permit;
• Customer education and protection are included in the regulations; and
• Customers would be admitted to a consumption area only through access controlled by the retail facility employees.
Staff has prepared draft ordinances for the public’s and the Commission’s consideration, feedback, and direction at today’s hearing. Exhibits 2-A through 2-C are redline versions of the cannabis sections being amended; Exhibits 3-A and 3-B are in ordinance format. The draft ordinances were developed taking into consideration of the Board of Supervisors direction, Cannabis Committee input and direction, and review of adopted ordinances from other jurisdictions that allow cannabis consumption (County of Santa Cruz, City of West Hollywood, National City (San Diego County) and San Francisco - Exhibits 4 through 7). Staff is requesting that the Planning Commission consider the draft ordinance amendments, take public testimony, and provide direction to staff to either return with changes to the draft ordinances or recommend that the Board of Supervisors consider the draft amendments.
DISCUSSION:
See Exhibit 1
OTHER AGENCY INVOLVEMENT
Housing and Community Development Department staff worked in collaboration with the Cannabis Program Office, Office of County Counsel, Health Department (including Environmental Health Bureau), Sheriff’s Office and Fire representatives to prepare the proposed ordinance amendments.
Prepared by: Mike Novo, AICP, Management Specialist, 831-755-5176
Approved by: Melanie Beretti, AICP, Chief of Planning 831-755-5285
The following attachments are on file with HCD:
Exhibit 1- Discussion
Exhibit 2-A - Draft regulations for Commercial Cannabis Permits (Monterey County Code Chapter 7.90) (Track Changes/redline Format)
• Exhibit 2-B - Draft regulations for Cannabis Consumption Venue (Title 21-Inland Zoning Ordinance) (Track Changes/redline Format)
• Exhibit 2-C - Draft regulations for Cannabis Consumption Venue (Title 20-Coastal Zoning Ordinance) (Track Changes/redline Format)
Exhibit 3 - Resolution Recommending Ordinance Amendments
• Exhibit 3-A - Ordinance Amendments for Chapter 7.90 and Chapter 21.67
• Exhibit 3-B - Ordinance Amendments for Chapter 20.67
Exhibit 4 - Santa Cruz County Ordinance excerpt
Exhibit 5 - West Hollywood Ordinance excerpt
Exhibit 6 - National City Ordinance excerpt
Exhibit 7 - San Francisco Ordinance excerpt
Exhibit 8 - CA Business and Professions Code 26200 (Cannabis, Local Control)
Cc: Cannabis Interested Parties List; Elizabeth Gonzales, Permit Center Manager; Craig Spencer, Housing and Community Development Director; Joshua Bowling, Assistant Director HCD; Evan Nuckles, Chief Building Official; Melanie Beretti, AICP, Chief of Planning; Sarah Wikle, Principal Planner; Robert Brayer, County Counsel; Marni Flagg, Environmental Health Bureau; Christabelle Zarraga, Health; Dr. Edward Moreno, Health; Elaine Narciso, Health; Vivian Avila, Health; Nicholas Kennedy, Sheriff; Michelle House, Cannabis Program Manager; Frank Espinoza, CALFIRE; Joel Mendoza, North County Fire Protection District; Scott Anderson and Rick Magno, Monterey County Regional Fire District; Reed Gallogly, County Counsel.