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Consent-General Government   # 19.
Board of Supervisors
County Counsel
Meeting Date:
11/22/2022
Brief Title
Cannabis Ordinance Updates
From:
Phil Pogledich, County Counsel
Staff Contact:
Phil Pogledich, County Counsel, x8172; April Meneghetti, Department of Community Services, x8646
Supervisorial District Impact:
Countywide

Subject

Waive second reading and adopt two cannabis program ordinances entitled (1) "An Ordinance of the Yolo County Board of Supervisors Amending the Cannabis Licensing Ordinance" and (2) "An Ordinance of the Yolo County Board of Supervisors Extending Permit Application Deadlines for Relocating Licensees;" and determine that each ordinance is exempt from the California Environmental Quality Act. (No general fund impact) (Pogledich)

Recommended Action

  1. Waive second reading and adopt an ordinance entitled "An Ordinance of the Yolo County Board of Supervisors Amending the Cannabis Licensing Ordinance;" and
     
  2. Waive second reading and adopt an ordinance entitled "An Ordinance of the Yolo County Board of Supervisors Extending Permit Application Deadlines for Relocating Licensees."

Strategic Plan Goal(s)

Safe Communities
Flourishing Agriculture
Robust Economy

Reason for Recommended Action/Background

The following text is identical to that included in the 11/8 staff report, except for (a) the removal of references to a second reading and (b) the addition of references to two new exhibits:  Attachment C, which is a 56-page table that includes language from the current County cannabis licensing program ordinance side-by-side with related provisions of the new licensing ordinance; and Attachment E, which is a comparison (redline) version of the current CLUO provisions on licensing application timeframes and the proposed relocation ordinance.

A.  Cannabis Licensing Ordinance.

In 2016, the Board of Supervisors approved an ordinance (Title 5, Chapter 20) to regulate commercial cannabis cultivation in Yolo County through the issuance of County cultivation licensees to applicants meeting certain requirements.  The cannabis licensing ordinance has been revised from time to time as the cannabis industry matured, state regulations evolved, and County staff gained experience with the local program. The last update occurring October 20, 2020.

Staff prepared the ordinance included with this staff report (Attachment A) to again update and refine the existing commercial cannabis licensing ordinance. In particular, the attached ordinance aligns the existing licensing program with the provisions of the Cannabis Land Use Ordinance ("CLUO"), adopted on September 14, 2021, which includes additional cannabis use types, changes or modifications to state definitions, and changes to aspects of the County's inspection and enforcement program. Most changes to the licensing ordinance are minor, as reflected in the following summary of key updates:

  • The licensing ordinance will be moved from Title 5 to Title 12
  • The ordinance will be referred to as the “Cannabis Licensing Ordinance” as it now includes language for all cannabis use types (including non-cultivation use types) encompassed by the CLUO 
  • The ordinance now references the CLUO and includes definitions related to the new use types (see section 12-04.03)
  • The ordinance include a new section for self-distribution of cannabis (see section 12-04.08(D))
  • Changes in ownership are addressed more extensively (see section 12-04.10)
  • Provisions on site inspections, investigations, and audits have been revised to increase clarity and promote efficient, effective enforcement (section12-04.12)
  • Consistent with the last bullet, provisions addressing violations (including for canopy limits, odor, and track and trace) and related enforcement procedures have been revised for clarity and ease of administration (sections 12-04.15 and 12-04.16) 
Staff recommend that the Board adopt the attached ordinance. Due to the extent of changes to the existing licensing ordinance, a redline comparison is not included with this staff report (attempts to produce a redline were futile due to the extent of the revisions and reorganization.) However, the current licensing ordinance is included as Attachment B for ease of reference and, as mentioned above, a table that includes text from related prosions of each ordinance in a side-by-side format is included as Attachment C. The proposed ordinance was circulated to existing cultivators about 15 days prior to the November 8 Board meeting for review.

B.  Application Deadlines for Relocating Licensees.
 
As discussed at the end of the presentation of a related cannabis ordinance on October 11, 2022, staff recommend allowing existing licensees that intend to relocate to a new site additional time to apply for a Cannabis Use Permit pursuant to the CLUO. This change will not extend their time to cultivate in their existing location. As set forth in the proposed ordinance included as Attachment D hereto, the extension is only for application submission and allows existing licensees an additional year to apply if they are relocating. This allows existing licensees an additional window of time to apply without having to compete with new license applicants for limited cultivation licenses when the County opens the program up to new participants down the road. Staff recommend approval of the proposed ordinance. A comparison of the proposed new ordinance and the existing County Code language is included as Attachment E.

C.  CEQA.
 
Each of the ordinances covered by this Board item is exempt from CEQA review. The first ordinance amends the existing cannabis licensing ordinance, an existing program that is ministerial in nature. Ministerial ordinances (and amendments thereof) are exempt from CEQA pursuant to CEQA Guidelines section 15268. The second ordinance modifies administrative timeframes only; it does not extend the length of time an existing cultivator can continue operating at a licensed site, nor does it otherwise have any potential to create a significant effect on the environment. For these reasons, it is exempt from CEQA under the "common sense" exemption that appears at CEQA Guidelines section 15061(b)(3). Staff will file a Notice of Exemption for each ordinance following final  Board action.

Collaborations (including Board advisory groups and external partner agencies)

Department of Community Services.

Fiscal Impact

No Fiscal Impact

Fiscal Impact (Expenditure)

Total cost of recommended action:
$   
Amount budgeted for expenditure:
$   
Additional expenditure authority needed:
$   
On-going commitment (annual cost):
$   

Source of Funds for this Expenditure

General Fund
$0

Attachments

Form Review

Inbox Reviewed By Date
Phil Pogledich Phil Pogledich 11/17/2022 12:45 PM
Form Started By:
Julie Dachtler
Started On:
11/08/2022 05:51 PM
Final Approval Date:
11/17/2022