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Consent-Community Services # .
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| Board of Supervisors |
Community Development |
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| Subject |
Adopt amended interim cannabis ordinance to allow distribution licenses, broaden penalties, and implement early implementation development agreements; adopt the Code of Ethics and Values, as amended, for Cannabis Business Tax Citizen’s Oversight Committee members; and adopt a resolution adding Committee members to the County's Conflict of Interest Code list of designated positions. (No general fund impact) (Echiburu/Strachan)
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| Recommended Action |
- Waive second reading and consider adoption of an ordinance amending Chapter 20 to Title 5 of the Yolo County Code regulating the cultivation of cannabis in the unincorporated areas of Yolo County;
- Adopt the Code of Ethics and Values, as amended, for the disclosure requirements for Cannabis Business Tax Citizen’s Oversight Committee members; and
- Adopt a resolution amending the County’s Conflict of Interest Code to include Cannabis Business Tax Citizen’s Oversight Committee members as Form 700 Category 1 filers
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| Strategic Plan Goal(s) |
Operational Excellence
Safe Communities
Sustainable Environment
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| Reason for Recommended Action/Background |
Proposed Amendments to Interim Cannabis Ordinance
Background
The Board reviewed and discussed certain amendments to the interim cannabis ordinance at the February 26, 2019 meeting. Per the Board’s direction, staff revised a portion of the proposed penalty language to clarify that it pertained to unlicensed “commercial cannabis activity” rather than unlicensed “use”. The proposed amendments are described below.
1. Distribution Licenses
The first amendment is to allow for the issuance of distribution licenses for existing County licensed cultivators. On July 24, 2018, the Board approved the issuance of distribution licenses in conjunction with projects under the nursery/processing pilot and the Early Implementation Development Agreement programs. Based on feedback provided by cultivators, the ability to distribute their own cannabis would provide them with more control over the testing of their product (distributors are responsible for testing of cannabis) and where their product is sold. It would also provide the County with more oversight regarding the disposition of the harvested cannabis. The license would be limited to support the business activities of the individual cultivator and not to serve other licensees. The State offers two types of distributor licenses, both of which would be allowed as ancillary activities under the proposed amendment.
- Distributor. A distributor is responsible for transporting cannabis goods, arranging for testing of cannabis goods, and conducting quality assurance review of cannabis goods to ensure they comply with all packaging and labeling requirements.
- Distributor-Transport. A distributor transport license allows a licensee to transport cannabis goods between licensed cultivators, manufacturers, and distributors.
2. Penalties
The second amendment is to broaden the scope of penalties to provide greater deterrence for the majority of the violations that are occurring. Under the existing ordinance, administrative penalties are as follows:
- Up to $500, per plant, per day; or
- Up to $25 per square foot of garden canopy that exceeds the garden canopy allowed by license of applicable law.
The scope of the penalties needs to be broadened to cover activities not directly related to plants or garden canopy to include penalties for any non-compliance with a standard or condition and for unpermitted cannabis uses other than cultivation. In addition, the penalties would escalate with repeat violations.
The proposed penalties are as follows:
| Violation |
First Offense |
Second Offense |
Third Offense |
Exceedance of Licensed or Allowed Cultivation Area
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$20 per square foot |
$30 per square foot |
$50 per square foot |
Non-compliance with Standard or Requirement
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$2,500 |
$5,000 |
$10,000 |
Unlicensed Commercial Marijuana Activity Cannabis Use Other than Cultivation Area |
$10,000 |
$25,000 |
$50,000 |
3. Early Implementation Development Agreements
The third amendment to the interim ordinance pertains to procedural revisions to provide an onramp for the adoption of Early Implementation Development Agreements. This amendment is similar to those previously adopted to authorize development agreements for nursery and processing facilities. It incorporates the Early Implementation Development Agreement policy adopted by the Board on March 6, 2018, as later amended, and states that all aspects of “early” development agreements shall be governed by that policy.
Lastly, the amendment includes procedural and language clarifications that do not constitute substantive revisions.
An ordinance with the proposed edits tracked is attached as Attachment A and a clean version of the ordinance with the edits requested at the first reading is attached as Attachment B.
Citizen’s Oversight Committee Disclosure Requirements
Consistent with Board direction on February 26, 2019, Attachment C includes the Code of Ethics and Values presented for consideration on February 26, along with the additional language that the Board requested be included (i.e., a sentence that reads: “If I am an official or an employee of a non-profit or government agency that may benefit or be otherwise impacted by a decision of the Citizen’s Oversight Committee, I will treat any matter that affects the direct financial or real property interests of that agency as if my own financial or real property interests were involved for purposes of this Code.”). Attachments D-F include a resolution to add Committee members to the list of designated positions subject to the County's Conflict of Interest Code, as well as certain related documents, including a revised version of Appendix A to the County's Conflict of Interest Code that specifies Committee members will be Category 1 filers. Taken together, these authorities establish the disclosure requirements for Citizen’s Oversight Committee members.
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| Collaborations (including Board advisory groups and external partner agencies) |
| County Counsel, County Administrator's Office, Department of Community Services, Cannabis Task Force |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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