Cannabis In SLO

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Cannabis is a plant that people use for different reasons. Some use it for medical purposes, like pain relief, while others use it for recreational purposes to feel relaxed or “high.” The plant contains chemicals called THC and CBD. THC is the part that causes the “high” feeling, while CBD is often used for medical purposes without making someone feel high. Cannabis can be smoked, eaten, or used in oils and creams. It’s also sometimes called marijuana or weed. The City of San Luis Obispo has it's own laws, regulations and requirements to sell or use cannabis in city limits.

We are excited to share that on October 1st, 2024 San Luis Obispo City Council adopted an ordinance allowing cannabis retail storefronts within City limits to expand their operations to include delivery services!

Cannabis for Personal Use

Medical Use

In 1996, the State of California became the first state in the nation to legalize medical cannabis when voters passed Prop 215 or The Compassionate Use Act. That distinction is now shared with 39 other states. Under the Compassionate Use Act, qualified patients and their caregivers can cultivate cannabis for personal use, subject to local laws.

Some of the common medical reasons people use cannabis include:

  1. Chronic pain: Cannabis can help reduce long-term pain from conditions like arthritis or nerve damage.
  2. Nausea and vomiting: It’s often used by people undergoing cancer treatments, like chemotherapy, to reduce nausea and vomiting.
  3. Muscle spasms: Cannabis may help people with conditions like multiple sclerosis that cause muscle stiffness or spasms.
  4. Anxiety and stress: Some people use cannabis to help with anxiety or stress, though this can depend on the type of cannabis used.
  5. Seizures: CBD, a part of cannabis that doesn’t make you feel high, can help reduce seizures in people with epilepsy.

Doctors sometimes recommend cannabis because it can provide relief when other medications don’t work as well or have too many side effects. However, it’s important for people to use medical cannabis under a doctor’s guidance because it affects everyone differently.

Recreational Use

On November 8, 2016, California voters passed Prop 64 or the Adult Use of Marijuana Act (AUMA), allowing adults 21 years or older to legally grow, possess and use cannabis for non-medical purposes.  California is currently one of 24 states where recreational cannabis is legal.  Under Prop. 64, residents can grow up to 6 plants in their household, subject to the approval and/or conditions set by their local jurisdiction.

People use cannabis for recreational reasons mainly because it can change how they feel and help them relax or have fun. Here are some common reasons:

  1. Relaxation: Cannabis can make people feel calm and less stressed.
  2. Feeling "high": The chemical THC in cannabis affects the brain and can create a sense of euphoria or a "high," making people feel happy or giggly.
  3. Social reasons: Some people use cannabis when they hang out with friends, similar to how others might drink alcohol in social settings.
  4. Enhancing experiences: Some people feel that cannabis makes activities like listening to music, watching movies, or eating more enjoyable.
  5. Creativity: Some users say that cannabis helps them feel more creative or think about things in new ways.

Even though people may use cannabis to relax or have fun, it’s important to know that its effects can vary depending on how much is used and the person’s body. For some, it might cause unwanted effects like anxiety, confusion, or feeling too sleepy. Laws and regulations about using cannabis recreationally also vary, click on Regulations for Recreational Use below for more information.

Although Prop 64 legalized cannabis in 2016, selling cannabis is still illegal in most of the state—which means many people unknowingly live in areas where dispensaries are unlicensed, and they have no easy way to access legal alternatives. Real CA Cannabis, makes it easier to find and verify licensed dispensaries selling legal products that meet consumer health standards.

Recreational Use in San Luis Obispo

Commercial Cannabis Business Program

City staff worked with the community to create a thoughtful, transparent, and fair process for granting permits to commercial cannabis businesses. This approach was designed to protect the community’s character and quality of life while ensuring cannabis businesses operating in the City are well run and sustainable, including:

  • A commitment to local hiring and community support.
  • Equity ownership and competitive employee compensation.
  • A solid financial plan and the resources needed to support a successful business.
  • A commitment to sustainable business and environmental practices.
Competitive Permits

These permits are limited. 

  • Retail storefront (limited to three total): If you have a retail storefront permit, you can sell cannabis goods, cannabis accessories and branded merchandise to the public on site. 

  • Cultivation (limited to a city-wide total of 70,000 sq. ft. of total canopy area): Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
    For example: If the City receives two cultivation applications, one for 50,000 square feet and another for 40,000 square feet (total of 90,000 sq ft), the applications will be scored and ranked because both cannot be accepted.

 

Non-Competitive Permits

These permits are unlimited:

  • Non-storefront retail (delivery-only): Non-storefront retail permit holders can conduct retail sales exclusively by delivery. “Delivery” also includes the use by a retailer of any technology platform owned and controlled by the retailer. (For cannabis delivery businesses located outside City limits but operating and delivering products within the City of San Luis Obispo, a Business License and Cannabis Tax Certificate is required).

  • Manufacturing: Creating cannabis products from the active cannabis compound, including flowers, oil, or resin (non-volatile method only).

  • Testing labs: Testing cannabis products to make sure they meet existing standards.

  • Distribution: The procurement, sale, and transport of cannabis and cannabis products between licensees.

Opening of Next Application Period for Non-Competitive Permits is July 2025

Below is a simplified outline of the City's fair and transparent application and permit process.

  1. Submit application and pay application fee. 
  2. Receive letter of completeness (non-competitive applications only).
  3. Passed applications are evaluated and scored based on Merit Criteria.  See also the Merit Criteria Example Sheet.
  4. Receive Contingent Operator Permit.
  5. Submit required background check applications and pass background check. 
  6. Receive final Cannabis Business Operator Permit.

Tip: Before submitting an application, review it in its entirety to ensure that it is complete and accurate.

Please also be advised that applicants will need to pay the Application Fee upon submittal of their Application. Please view the City's Comprehensive Fee Schedule for more information on Cannabis related fees.

Applicant Resources
Operator Resources

Staff Contact: Ivana Gomez, Cannabis Business Coordinator, igomez@slocity.org

City Police Department Contact: Sergeant Bryan Treanor, btreanor@slocity.org