Monterey County planning commissioners discuss next steps to allow on-site cannabis consumption.

Smoke. Odor. Public safety. How to mitigate and measure intoxication.

These were the primary concerns raised by Monterey County planning commissioners at a workshop on Wednesday, Feb. 25. It was the first meeting following years of research and industry discussion on the subject, step one in drafting an ordinance that could allow cannabis consumption on-site at retail locations in unincorporated areas.

After continued requests from the industry, the County Board of Supervisors directed staff in fall 2025 to prepare recommendations, the subject of the Feb. 25 workshop.

“It’s kind of the next natural progression of the cannabis industry,” says Joey Espinoza, a longtime industry advocate. “The opportunity to have a consumption lounge is a big step, and it could potentially help the industry and operators be a little more innovative. It’s very difficult to be innovative when you’re so heavily regulated.”

Since 2016, cannabis has been legal for recreational use in California. The industry has faced a rocky road, with tax revenue to the County of Monterey collapsing from $20 million in 2021 to $3 million in 2024.

Several California cities, including San Francisco and West Hollywood, have pioneered cannabis consumption lounges. County planners analyzed regulations in those jurisdictions, as well as in Santa Cruz County and National City in San Diego County.

Mike Novo, a management specialist for the Monterey County Planning Department, presented several options, ranging from streamlined approval to a complete prohibition. Novo supported the streamlined option, which would allow retailers to obtain County staff approval for indoor consumption, with additional permitting required for outdoor consumption.

While commissioners generally supported creating a path forward, they debated how to address public health risks associated with a substance whose effects are less understood than alcohol or cigarettes.

“Our directive is how to figure out how to do this safely,” Commissioner Martha Diehl said.

Commissioners debated how to ensure proper ventilation and how to control odors associated with cannabis consumption. They compared potential cannabis lounges to cigar lounges as well as bars, raising questions about secondhand smoke risks and how to detect patrons who are too inebriated.

Commissioners also discussed hours of operation, on-site food sales and the inclusion of live entertainment.

County staff anticipate returning to the Planning Commission with revised draft ordinances this spring. The commission will then make a recommendation to the Board of Supervisors.

“It gives people an opportunity to have somewhere to go,” says Aram Stoney, co-founder of Big Sur Canna+Botanicals. “I’ve seen people just out in the parking lot or over on a bench somewhere. This isn’t going to stop that completely, but it does give people that chance. It also opens up the door for other sources of revenue for an already struggling industry.”