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File #: 25-761    Name: Cannabis Lounges
Type: General Agenda Item Status: Agenda Ready
File created: 10/15/2025 In control: Cannabis Committee
On agenda: 10/22/2025 Final action:
Title: a. Receive a presentation related to developing an ordinance to allow Cannabis Lounges as an allowed land use; and b. Direct staff to conduct public outreach activities in relation to developing a Cannabis Lounge ordinance for the coastal and non-coastal areas of Monterey County. Presenter: Mike Novo, Management Specialist, Housing and Community Development
Attachments: 1. Board Report, 2. Attachment A - Santa Cruz County Cannabis Lounge Ordinance - redline, 3. Cannabis Lounges Powerpoint HCD
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Title
a. Receive a presentation related to developing an ordinance to allow Cannabis Lounges as an allowed land use; and
b. Direct staff to conduct public outreach activities in relation to developing a Cannabis Lounge ordinance for the coastal and non-coastal areas of Monterey County.

Presenter: Mike Novo, Management Specialist, Housing and Community Development
Body
RECOMMENDATION:
It is recommended that the Board of Supervisors Cannabis Committee:
a. Receive a presentation related to developing an ordinance to allow Cannabis Lounges as an allowed land use; and
b. Direct staff to conduct public outreach activities in relation to developing a Cannabis Lounge ordinance for the coastal and non-coastal areas of Monterey County.



SUMMARY:
County staff is considering an ordinance that will allow all existing cannabis retailers to also include a cannabis “lounge” (consumption) on site if they can meet all the requirements in the ordinance. The focus on those requirements would be ventilation, ensuring a safe environment for employees and customers, and ensuring that odor control is addressed. The ordinance would require a ministerial permit through the Cannabis Program annual permit (MCC 7.90.040) and renewal process. A discretionary (planning) permit option is being discussed to potentially allow outdoor cannabis lounges where the circumstances warrant and would also be required if additional parcels are necessary to establish a cannabis lounge associated with an existing dispensary.

DISCUSSION:

Monterey County Code Framework for Retail Cannabis Uses

The County of Monterey adopted ordinances that regulate commercial cannabis activities in the unincorporated area. The County Code definitions state that the terms “Dispensary,” “Retailer” and “Retail Facility” have the same meaning for the purpose of implementing the regulations.

The non-coastal area regulations are found in Chapter 21.67 at the following webpage:
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