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  Time Set   # 15.       
Board of Supervisors   
Meeting Date: 03/10/2020  
Brief Title:    Industrial Hemp Ordinance
From: Mindi Nunes, Assistant County Administrator, County Administrator's Office
Staff Contact: Eric Will, Associate Management Analyst, County Administrator's Office, x8157
Supervisorial District Impact:

Subject
Conduct a public hearing, continued from the February 25 Board meeting, and consider adoption of an ordinance entitled "An Ordinance Restricting Manufacturing, Processing, and Storage of Industrial Hemp." (No general fund impact) (Nunes/Will)
Recommended Action
  1. Introduce the revised ordinance (Attachment A) by title only and waive first reading;
     
  2. Receive a staff presentation and hold a public hearing, continued from February 25, on the proposed ordinance; and
     
  3. Adopt the proposed ordinance.
Strategic Plan Goal(s)
Flourishing Agriculture
Reason for Recommended Action/Background
Background
On February 25, 2020 the Board received a staff presentation and update on industrial hemp in the unincorporated areas of the County. During this meeting, staff presented an ordinance that would ban most activities associated with manufacturing, processing, storage, and retail sales of industrial hemp.  Staff requested, however, that the ordinance return for further consideration to allow for the addition of changes to retail sales language in the ordinance.  The Board also directed a minor change to the grandfathering date for storage of industrial hemp as part of a motion to continue the public hearing and defer potential action on the ordinance to March 10, 2020.  See Attachment B for the February 25, 2020 staff report for additional details.

Proposed Ordinance Changes
Staff has made two changes to the ordinance that was presented at the February 25 Board meeting. These changes include:
  • Adding a grandfathering date for industrial hemp storage locations existing as of February 25 (revised from the effective date of the ordinance, as originally proposed by staff); and
  • Removing language regulating the retail sale of industrial hemp products.
The first change implements Board direction provided at the conclusion of the February 24 public hearing.  The second change, however, varies from the staff recommendation on February 24 by eliminating the retail sale prohibition altogether, rather than (as staff originally proposed) modifying it to exempt products that meet consumer product safety requirements under the federal Sherman Act (and its State equivalent). 

The main reason for this approach is that staff determined a local ban on the sale of industrial hemp products that fail to comply with federal and state law would serve little purpose, as they already cannot be sold and are subject to removal from store shelves (among other remedies) at the direction of regulatory agencies.  Current law allows common hemp products such as hemp seed and hemp seed oil to be sold for human consumption because, as recognized in California Department of Public Health guidance documents, such products do not contain any "adulterated" elements.  Other hemp products that contain CBD oil, however, are considered "adulterated" (i.e., containing a poisonous, harmful, or unsafe ingredient) and cannot legally be sold as food products.  This would presumably apply to cosmetics as well. Pending legislation (Assembly Bill 228) would create a regulatory path for certain CBD products to be legally sold in California if they meet various consumer safety oriented requirements.

Altogether, staff concluded that County regulation of retail sales of industrial hemp products would add little or nothing to existing federal and state restrictions.  Staff have thus removed references to retail sales from the revised ordinance proposed for Board adoption.  Staff will, however, continue to monitor developments in this area and will apprise the Board of any significant changes during future presentations on County regulation of industrial hemp.
Collaborations (including Board advisory groups and external partner agencies)
County Counsel, County Administrator's Office, Department of Agriculture, Community Services Department
Attachments
Att. A. Ordinance No. 1519
Att. B. 2-25-20 Staff Report
Att. C. Presentation

Form Review
Inbox Reviewed By Date
Phil Pogledich Phil Pogledich 03/03/2020 03:47 PM
Elisa Sabatini Elisa Sabatini 03/04/2020 02:59 PM
Form Started By: ewill Started On: 02/24/2020 03:44 PM
Final Approval Date: 03/04/2020

    

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