Cannabis Updates | May 2023
Information Bulletin Update: Announcement of New SEED Cannabis Equity Program Code Amendments and Public Comment Period
The Cannabis Business Division announces proposed amendments to the Land Development Code to implement the Social Equity and Economic Development (“SEED”) Cannabis Equity Program. The intent of the program is to level the playing field and promote participation in the City of San Diego’s regulated cannabis market by the people who were most harmed by the inequitable prosecution of the War on Drugs related to cannabis.
Beginning on May 22, 2023, and for the following 30 calendar days, the public is invited to review and provide comments regarding the proposed code amendments. Please send all comments to DSDCannabis@sandiego.gov. This public comment period will close on June 21, 2023, at 4:00 p.m.
In addition to this call for public comments, public workshops and informational presentations will take place as follows:
May 23, 2023 – Community Planners Committee Meeting – Informational Presentation
June 1, 2023 – San Diego Planning Commission – Workshop Item
June 15, 2023 – Land Use and Housing Committee – Informational Presentation
City of San Diego Cannabis Mapping Tool
Use this online map to review permitted cannabis businesses, locate current applications and evaluate allowable City zones and nearby sensitive receptors to identify opportunities for new businesses. View map.
Report an Illegal Cannabis Business
To ensure health and safety as well as support legal cannabis operators, the City encourages residents to report possible illegal narcotics activity to both the City of San Diego and the State of California. Please use these links:
There is now a new amendment process for Cannabis Conditional Use Permits that do not propose physical expansion. 
Learn more. about Rapid Review
The final Cannabis Equity Assessment was unanimously adopted by the San Diego City Council on Oct. 11, 2022. View the full report with attachments or without attachments.
Do you need assistance with the expungement of your record? The County Defender’s Office offers assistance to those residents who need their criminal records expunged and sealed. From reducing felony convictions to misdemeanors to dismissing/expunging your criminal record to getting Certificates of Rehabilitation, the County of San Diego Office of the Public Defender is pleased to help you with your Fresh Start! Please go to the Fresh Start website to learn more about this free program.
Regulated by San Diego Municipal Code §141.1004, these facilities include operations involving::
Restrictions
Permit Process
A Conditional Use Permit is required in accordance with a Process Three decision by the Hearing Officer. The Hearing Officer’s decision is appealable to the Planning Commission. For more details, including a summary of the Facility permitting process, and links to helpful information, refer to Information Bulletin 170.
Regulated by San Diego Municipal Code §141.0504, Cannabis Outlets are establishments (retail, medicinal or combination) operating with a Conditional Use Permit where cannabis, cannabis products and cannabis accessories are sold to the public.
Restrictions
Permit Process
A Conditional Use Permit (CUP) is required in accordance with a Process Three decision by the Hearing Officer. The Hearing Officer’s decision is appealable to the Planning Commission. For more details, including a summary of the Outlet permitting process, and links to helpful information, refer to Information Bulletin 170.
Testing for scientific research (including cannabis testing) that leads to the development of new products and processes is allowed as an Industrial Use. Testing Labs are permitted in limited commercial and industrial zones. Because these types of uses are allowed by right in specified zones and do not require the issuance of a development permit, these applications are not specifically tracked.
March 25, 2014 - The City adopts Ordinance No. O-20356, which implements zoning regulations for MMCCs.
Nov. 8, 2016 - San Diego voters pass Measure N, Non-Medical Cannabis Tax, which imposed a gross receipts tax on non-medical cannabis businesses that operate or provide services within the City. The tax applies to non-medical cannabis business activities, including but not limited to transporting, manufacturing, cultivating, packaging or retail sales. Businesses are initially taxed at a rate of 5% of monthly gross receipts and will increase to 8% on July 1, 2019. This increase cannot exceed 15% of gross receipts. Learn more at the Cannabis Business Tax web page.
Nov. 9, 2016 - Control, Regulate and Tax Adult Use of Marijuana Act becomes law and allows for recreational cannabis sales in California by January 2018.
Feb. 22, 2017 - The City adopts Ordinance No. O-20793, which replaces the MMCC use with a new retail sales use category, Cannabis Outlet. It became effective in areas of the City of San Diego outside of the Coastal Overlay Zone on April 12, 2017, and within the Coastal Overlay Zone on Oct. 12, 2017.
Sept. 11, 2017 - Ordinance No. O-20859 is introduced to regulate the cannabis industry relative to commercial cultivation, manufacturing, storage and distribution of medical and recreational cannabis and cannabis products and to allow by-right cannabis testing labs. It became effective on Nov. 17, 2017, in areas of the City of San Diego outside of the Coastal Overlay Zone, and on Feb. 8, 2018, in areas located within the Coastal Overlay Zone.
The Cannabis Business Tax (CBT) applies to cannabis business activities -including but not limited to- transporting, manufacturing, cultivating, packaging or retail sales, whether operating from a fixed location in the City or coming into the City from an outside location.
2019-10-01 Memo on Cannabis Permitting 2019-09-26 DSD Cannabis Permitting Presentation to Planning Commission Ordinance No. O-21163 – Cannabis Production Facilities with an approved Zoning Use Certificate and Business Tax Certificate issued before Jan. 31, 2017, shall cease use or obtain all approvals required to operate by Oct. 17, 2021.12th Update, Phase 3: O-21221
12th Update, Phase 2: O-21163
Cannabis Outlets and Cannabis Production Facilities with approved Conditional Use Permits must comply with SDMC Section Chapter 4, Article 2, Division 15, the regulating CUP, and all applicable City, County, State and Federal Regulations. Applicant Instructions can be found here. To initiate this compliance process, please email DSDCannabis@sandiego.gov.
Any other permits or licenses required by law must be obtained from the appropriate agency. For information regarding State of California Cannabis requirements and regulations, running a cannabis business in California, or searching for a licensed business, please refer to the California Department of Cannabis Control.
