Title
Receive and accept the Cannabis Program fiscal year 2025-2026 annual budget review.
Report
RECOMMENDATION:
It is recommended that the Budget Committee receive and accept the Cannabis Program fiscal year 2025-2026 annual budget review
SUMMARY:
The Cannabis Program (Program) provides a comprehensive local framework for managing licensed commercial cannabis activities in collaboration with state and county agencies. The Program oversees taxation, regulation, enforcement, education, and efforts to protect public health, the environment, and community safety. The County of Monterey is currently the sixth largest holder of active Department of Cannabis (DCC) licenses in California, with 312 total licenses, 253 of which are located within the unincorporated area of the county. As of June 2026, the County’s license profile is dominated by small cultivation licenses, with a smaller number of medium and large licenses.
The Program coordinates activities with and between key departments, external agencies, the DCC, the cannabis industry, and community groups. Seven County departments and the fire districts work jointly to enforce local cannabis ordinances as well as regulations issued by the DCC and other state and federal agencies. Each of these organizations plays a critical role and requires the program to be well coordinated, with effective internal and external communication to ensure the success of the cannabis industry within the unincorporated areas of the County.
DISCUSSION:
The cannabis industry remains a significant economic engine for the County of Monterey (County) but continues to face substantial challenges, including taxes and regulatory requirements intensified by competition from a thriving illicit market. These pressures collectively strain the cannabis industry, leading some businesses to reduce operations, close entirely, or fall behind on tax obligations. Currently, 52 active commercial cannabis businesses operate within the County, includ...
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