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Regular-General Government # 55.
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| Board of Supervisors |
County Administrator |
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| Subject |
| Receive update on industrial hemp processing, manufacturing and sales, and direct staff to develop an ordinance banning industrial hemp processing, manufacturing and sales until a state legal framework for such activities is adopted. (No general fund impact) (Nunes/Will) |
| Recommended Action |
| Receive update on industrial hemp processing, manufacturing and sales, and direct staff to develop an ordinance banning industrial hemp processing, manufacturing and sales until a state legal framework for such activities is adopted. |
| Strategic Plan Goal(s) |
| Flourishing Agriculture |
| Reason for Recommended Action/Background |
Processing, Manufacturing, and Sale of Industrial Hemp
The County is currently establishing a workgroup to develop an ordinance that would allow cultivation of industrial hemp within unincorporated areas of Yolo County. However, there have been several requests for business licenses to process industrial hemp or manufacture related products, and these activities are not covered explicitly under the existing moratorium. There have also been requests for import and storage of hemp in Yolo County. While state legislation on some of these topics is under consideration by the Legislature, no state regulation presently exists and staff believe the County presently has three potential options for a local regulatory approach. It should be noted that all of these activities carry the same potential for criminal activity as the growing and cultivation of hemp given the appearance and odor similarities between marijuana and hemp.
State Regulations
Assembly Bill 228 proposes to establish a regulatory framework for industrial hemp products to be used as a food, beverage, or cosmetic. However, California law currently does not provide any permit, license, or other requirements for the manufacturing, processing, or selling of non-food industrial hemp or hemp products.
Given the lack of State regulatory guidance and no clarity regarding the nature of hemp processing and manufacturing entails, the County has several options that may be pursued to respond to requests for business licenses within unincorporated areas.
County Options
- Option 1 – Allow Business Licenses for Processing, Manufacturing, and Sales of Industrial Hemp
While there is no current prohibition on these types of business licenses, the County could develop guidelines for the approval or denial of a business license and regulatory framework in order to address the issues of criminal activity and the manufacturing or sale of undesired products (i.e., smokeable hemp cigarettes as one possible example of such products).
- Option 2 – Ban Processing, Manufacturing, and Sales of Industrial Hemp until a State Legal Framework is Adopted (Staff Recommendation)
This option would require an ordinance banning the storage, processing, manufacturing, and sales of industrial hemp until the State is able to pass legislation or provide other formal guidance on these specific activities. Once this occurs, the County would then have the option to amend the ordinance as the State regulatory framework matures.
- Option 3 – Permanently Ban Processing, Manufacturing, and Sales of Industrial Hemp
This option would require an ordinance permanently banning these specific activities. However, cultivation would not be banned within this ordinance and would instead remain subject to the moratorium that expires in mid-January 2021. If established, this ordinance could also be altered by the Board of Supervisors in the future, including to align with any ordinance regulating cultivation following the end of the moratorium. |
| Collaborations (including Board advisory groups and external partner agencies) |
| County Administrator's Office, Department of Agriculture,Community Services, County Counsel |
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