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San Diego’s cannabis shops may add more hours as California city faces $258 million budget gap

Jacob Shelton June 20, 2025

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An American Heart Association study has found that daily marijuana use is linked to a significantly higher risk of heart attack and stroke. And the increased danger exists whether users smoke, vape or eat their cannabis products.

San Diego, California – San Diego took a significant step this week toward extending the operating hours of its cannabis dispensaries, a move that advocates say could boost city revenue, support struggling businesses, and curb the influence of illicit dealers.

On Wednesday, the City Council’s Economic Development and Intergovernmental Relations Committee unanimously approved a proposal to allow dispensaries to open as early as 6 a.m. and close as late as 10 p.m., expanding the current 7 a.m. to 9 p.m. window. If approved by the full City Council later this summer, the new hours would match those permitted under California state law and bring San Diego into alignment with neighboring cities like Chula Vista, La Mesa, and Oceanside.

Supporters of the change point to both economic and public safety arguments. With San Diego facing a $258 million budget deficit, Mayor Todd Gloria’s administration estimates the measure could generate nearly $1.9 million in new revenue next fiscal year—$1.7 million from cannabis business taxes and the remainder from sales taxes. The city has already factored that revenue into its finalized budget, even though the measure has yet to become law.

Cannabis industry representatives say the extended hours are long overdue. “After 9 p.m., all those sales are untaxed and unregulated and really, frankly, dangerous,” said Phil Rath, who lobbies for the United Medical Marijuana Coalition. He called the proposal a good leveling of the playing field for the legal business, especially as dispensaries contend with both tighter local regulations and competition from illicit sellers.

Dispensary owner Rakesh Goyal described the longer hours as the “single greatest tool” for legal businesses to compete in a saturated and often undercut market. Despite a recent 25% increase in the city’s cannabis business tax—bringing San Diego’s rate among the highest in California—revenues have fallen short of projections. Sales declined by $1.5 million in the last fiscal year, and city officials expect another $3 million drop this year.

While most committee members echoed support for the proposal, not all public testimony was favorable. Solana Beach resident Peggy Walker noted that San Diego needs to find a way to decrease the deficit that doesn’t have anything to do with cannabis or recreational drugs and alcohol.

Councilmember Raul Campillo pushed back, saying the measure “helps businesses, which in turn helps employees, which in turn helps our revenue.”

The San Diego Police Department reported no evidence that dispensaries contribute to increased crime, easing concerns over public safety. A full City Council hearing and public comment session is scheduled for June 23, with a final vote expected later this summer.

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