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Regular-General Government # 42.
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| Board of Supervisors |
Agriculture |
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| Subject |
| Waive second reading and consider adoption of an ordinance amending Chapter 20 to Title 5 of the Yolo County Code expanding the scope of prohibition on cultivation of medical marijuana in the unincorporated areas of Yolo County. (Potential general fund impact) (Young) |
| Recommended Action |
| Waive second reading and adopt an ordinance amending Chapter 20 to Title 5 of the Yolo County Code regulating the cultivation of medical marijuana in the unincorporated areas of Yolo County. |
| Strategic Plan Goal(s) |
Operational Excellence
Safe Communities
Sustainable Environment
Flourishing Agriculture |
| Reason for Recommended Action/Background |
Prohibition Amendment
On March 22, 2016, in response to the Medical Marijuana Regulation and Safety Act (MMRSA) and to effect greater local control, the Board of Supervisors adopted Ordinance 16-32, adding Chapter 20 to Title 5 of the Yolo County Code regulating medical marijuana cultivation in Yolo County. The Board requested the initial ordinance as an interim measure to address neighbor complaints and limit harmful environmental impacts while protecting patient access to medical marijuana, while state and county staff develop more comprehensive regulatory program.
The second reading of the proposed amendment will expand the scope of prohibition on the cultivation of medical marijuana. Adoption of this ordinance (Att. A: Ordinance) will make the cultivation of medical marijuana unlawful in all cases, with two exceptions. One, when cultivation is by a qualified patient cultivating medical marijuana at their own home in an area not exceeding 100 square feet. Two, those who are, in addition to meeting all other legal requirements, currently legally cultivating by permit may continue to do so, and those who have submitted a Notice of Intent to the Central Valley Regional Water Quality Control Board no later than 5:00 p.m. on October 11, 2016 and owned their real property or were a duly authorized lessee of the property as of October 11, 2016, and meet all other requirements, may cultivate medical marijuana. Revised language in the second reading will include those in contract on a real property by the deadline as permissible.
Proposed Fees
Ordinance 16-32 and subsequent amendments in October and November 2016 provide the County the ability to establish certain fees related to the Marijuana Commercial Cultivation program and permitting scheme. This new program in Yolo County has a few diverse case-level examples of initial implementation of permitting scheme and the associated workload for County staff. Absent fee revenue to support the program activities, full implementation of the permitting process cannot be implemented without subsidy of the General Fund. County staff and Board directive both recommend that this program for a specific sub-section of the business industry population in Yolo County should not receive preferential treatment from other business types where licensing fee structures support associate expenses, nor should General Fund monies be allocated for the purposes of this program. A hearing on the proposed fee structure is included on the Board of Supervisors agenda today.
| Application Fee |
$1,500 |
| Initial Permit Fee |
$7,600 |
| CBD Dominant Annual Certification Fee |
$1.60/sq. ft. |
| THC Dominant Annual Certification Fee |
$2.48/sq. ft. |
| Hourly Enforcement Fee |
$142.00/hour |
Initial permit inspections and enforcement actions are conducted by the multidisciplinary task force, that includes Buildings and Environmental Health from Community Services, Department of Agriculture, the Sheriff's Office, and the District Attorney's office. Interagency collaboration will include the fire chiefs, the Department of Water Resources, the Air Quality Management District, and other state regulatory agencies as they become active in the permitting process. Current ordinance language requires that commercial cultivators be in compliance with all applicable Yolo County codes for permit issuance, including Title 7 - Building Regulations.
Next Steps
Staff is currently exploring tax revenue options and is developing an application tax where revenues could be directed toward the community benefit, in addition to the proposed fee structure to cover program expenses. The next cycle for a general tax will be in March 2018, and options around this tax will be included in the next Board of Supervisor's update on commercial cultivation in December 2016.
The passage of Proposition 64 in November 2016 legalizes recreational marijuana but brings no immediate changes to Yolo County's interim ordinances, as much of the state law and permitting scheme will go into effect beginning on January 1, 2018. Staff will be returning in December 2016 with an updated decision matrix to get Board direction as staff continues working to develop the permanent ordinance. Included in future planning and Board guidance discussions will be proposed approaches for inclusion in a permanent ordinance on how to best manage land use in Yolo County. |
| Collaborations (including Board advisory groups and external partner agencies) |
| Department of Agriculture worked closely with County Counsel, the County Administrator's Office and the District Attorney's Office in developing the interim ordinance update, as well as in coordination with the Medical Marijuana Cultivation Task Force, comprised of representatives from the Department of Community Services, the Sheriff's Office, and Health and Human Services Agency. Regional and state agencies, such as the Central Valley Regional Water Control Board and the Yolo-Solano Air Quality Management District. Fire District Chiefs are also being incorporated into the inspection and permitting process. Medical marijuana industry groups and businesses, and Yolo County residents and neighbors have been actively part of the iterative dialog in developing these changes to the interim ordinance. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| Program costs will be recouped from fees proposed for adoption on November 22, 2016. Upon fee approval, formal budget resolutions for staffing and program implementation costs will be brought back to the Board for approval. |
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