Can You Open a Dispensary in Santa Monica?

Yes — and unlike most LA County cities, Santa Monica makes it relatively straightforward. In September 2025, the City Council approved adult-use cannabis retail as a permitted use (no discretionary review) in all non-residential zoning districts. There is no license cap.

Why Santa Monica is different

Most cities in LA County either ban cannabis entirely or impose hard license caps with competitive application processes. Santa Monica took a different approach: cannabis retail is treated the same as any other permitted commercial use. You need a cannabis retailer permit, a business license, and a state license — but there's no cap on the number of permits and no discretionary review by the Planning Commission.

This was a deliberate policy choice. The City Council directed staff to eliminate discretionary review for cannabis retail, making it a by-right use subject only to objective zoning standards and operating requirements.

Where dispensaries are allowed

Cannabis retailers are permitted (P) in every non-residential zoning district. Residential zones are prohibited.

Buffer requirements

Even though cannabis is permitted in all non-residential zones, buffer distances eliminate some parcels from eligibility. Cannabis businesses cannot operate within 600 feet of schools, youth centers, or daycare centers licensed by the State Department of Social Services.

Unlike cities such as Pasadena (which adds retailer-to-retailer spacing), Santa Monica does not impose any separation distance between cannabis retailers. Two dispensaries can legally operate next door to each other.

Tax rate

Santa Monica imposes a 4% gross receipts tax on cannabis sales, approved by voters as Measure HMP in 2022. The Council can increase the rate up to 10% without voter approval, but the current rate is significantly lower than LA (10%) or Long Beach (7% adult-use).

Operating requirements

All cannabis retailers must comply with the operating requirements in Chapter 6.200 of the Municipal Code. Key requirements include security guards during all hours of operation (including neighborhood patrol), a community relations contact person for neighbors within 100 feet, compliance with state regulations, and regular meetings with the Police Department and Fire Department.

Delivery is permitted for both storefront retailers and non-storefront (delivery-only) retailers. Non-City-based delivery companies (retailers based in other cities) need a separate permit to deliver within Santa Monica.

Social equity program

The City Council has authorized a social equity program for cannabis permits, developed with community input and backed by data on the impact of cannabis criminalization in Santa Monica. Details of the program are set by Council resolution — check with the city for current application requirements.

Parking

Here's an important detail most people miss: if your dispensary is within half a mile of a major transit stop, no minimum parking is required. Santa Monica has extensive transit coverage (Expo Line, Big Blue Bus), so many commercial parcels qualify. Outside the transit zone, parking follows the standard retail rate of 1 space per 300 sq ft.

Common mistakes

The biggest risk in Santa Monica isn't zoning — it's assuming the market is wide open. While there's no license cap, the 600-foot school buffer and high commercial rents create natural limits. Do a parcel-level buffer analysis before signing a lease. Also confirm your site isn't within a specific overlay that adds restrictions, and budget for the security requirements (on-site guards + neighborhood patrol) which add significant operating cost.