City Council

Item 203:\nAmendment to Hours of Operation for Cannabis Outlets.\nThis item will be considered in the afternoon session which is scheduled to begin at\n2:00 p.m.\nTotal Estimated Cost of Proposed Action and Funding Source:\nThere are no costs associated with this action. The proposed action is anticipated to result\nin an increase in sales tax and cannabis business tax revenue generated by cannabis\noutlets. Extended hours of operation may generate an additional $1.7 million in cannabis\nbusiness tax revenue and $170,000 in local sales taxes in Fiscal Year 2026.\nCouncil District(s) Affected: Citywide.\nProposed Actions:\nThis proposal aims to align the City of San Diego’s (City) regulations with those of the\nState of California (State) by extending the hours of operation for permitted cannabis\noutlets within the City by two hours per day. Currently, the City's regulations allow\noperating hours from 7:00 a.m. to 9:00 p.m., which are more restrictive than the hours\npermitted by the State. The proposed amendment to the City’s regulations seek to extend\nbusiness hours by one hour in the morning (opening at 6:00 a.m.) and one hour in the\nevening (closing at 10:00 p.m.) to enhance economic opportunities, increase tax revenue,\nand align the City’s regulations more closely with those of the State.\nSubitem-A: (R-2025-634)\nResolution determining that the approval of amending the hours of operation for cannabis\noutlets is categorically exempt from the California Environmental Quality Act under\nCEQA Guidelines Section 15301.\nSubitem-B: (O-2025-134)\nIntroduction of an Ordinance amending Chapter 14, Article 1, Division 5 of the San Diego\nMunicipal Code by amending Section 141.0504, relating to hours of operation for\ncannabis outlets.\nCommittee Actions Taken:\nThis item was heard at the Economic Development and Intergovernmental Relations\nCommittee meeting on June 11, 2025.\nACTION: Motion by Vice Chair Foster lll, second by Committee Member Lee, to\nrecommend Council approval of staff’s proposed actions.\nVOTE: 4-0; Campillo-yea, Foster III-yea, Campbell-yea, Lee-yea.\nOffice of the Mayor: Matt Yagyagan, (619) 236-6330\nCity Attorney Contact: Lindsey Sebastian