Introduce by title only, waive first reading, receive a presentation and public comment regarding an ordinance entitled “An Ordinance of the Board of Supervisors of the County of Yolo Extending Certain Use Permit Timeframes in the Cannabis Land Use Ordinance,” determine the amendments are subject to the Environmental Impact Report (SCH# 2018082055) certified on September 14, 2021, and that no further review is required pursuant to Sections 15168(c), 15162, and 15183 of the California Environmental Quality Act (CEQA) Guidelines, and continue the ordinance to the November 21, 2023, Board of Supervisors meeting for a second reading and adoption. (No general fund impact) (Lindbo/Anderson) (Est. Time: 5 min)

Minor clean-up amendments to the Cannabis Land Use Ordinance (CLUO) have been proposed for the Board’s consideration to add the correct references and citations to the County’s Cannabis Licensing Ordinance, and to extend certain use permit timeframes for specific categories of applicants. The proposed amendments will provide a path for Early Development Agreement applicant(s) to apply for a use permit in compliance with the Cannabis Land Use Ordinance requirements and will allow Existing Licensees the ability to continue cultivating under a validly issued license in the event the use permit application review process extends past the existing dates established for license renewal. These amendments will provide equity to applicants in light of uncertainties affecting the regulated cannabis industry. These changes are set forth in Exhibit 1 of the attached ordinance (Attachment A).  

A. Minor Clean-Up to Comport with Licensing Ordinance and State Regulations  
The CLUO, adopted by the Board on September 14, 2021, contains references to the Marijuana Cultivation Ordinance (Chapter 5 of Title 20, Yolo County Code) which has since been repealed and replaced, in part, by the Cannabis Licensing Ordinance in Chapter 4 of Title 12 of the Yolo County Code. Staff propose changes to three definitions in CLUO Section 8-2.1403 and one change in Section 8-2.1408 to include correct citations to the Cannabis Licensing Ordinance.

B. Path to Use Permit for Early Development Agreement Applicant(s)
Staff propose allowing the applicant who applied for an Early Implementation Development Agreement, consistent with the Board adopted Early Implementation Development Agreement Policy (adopted on March 6, 2018), the opportunity to transition the Early Development Agreement application to an application for a use permit consistent with the CLUO as a new Category 6 licensee. The proposed revisions that pertain to the Early Implementation Development Agreements are focused in Sections 8-2.1404(B) and 8-2.1410(J).

These revisions would allow the sole remaining applicant under the Early Implementation Development Agreement application process the chance to pivot away from the March 6, 2018, policy framework and instead be reviewed consistent with the cannabis use permit application process specified in the CLUO. As proposed in Section 8-2.1410(J), if an early Development Agreement applicant seeks a use permit in compliance with Section 8-2.1404(B), the Early Implementation Development Agreement application shall be considered null and void.

The sole remaining applicant has maintained commitment to the project while considering the continued evolution of the local and state cannabis market. By allowing the transition from an Early Implementation Development Agreement to a use permit, the project can be reviewed consistent with other cannabis projects and allow the applicant greater flexibility in their proposed operations than what is currently permissible under the Early Implementation Development Agreement policy framework. This proposed change would only allow the one remaining application under review by County staff the opportunity to continue its review consistent with the CLUO and would not permit additional new applications.

C. Extension of License Term by One-Year for Applicants with a Pending Use Permit Application
In addition to establishing use permit application deadlines for all categories of licensees, CLUO Section 8-2.1404(B) states that existing licensees with a timely, complete use permit application may continue to seek license renewal for a certain timeframe. For instance, 8-2.1404(B) currently allows Category 1 licensees (Existing Licensees located within Capay Valley that do not seek relocation outside the Capay Valley) and Category 2 licensees (Existing Licensees located outside Capay Valley that intend to seek non-cultivation license types) to seek license renewal and continue to operate with a validly issued license through March 31, 2024. These licensees (Categories 1 and 2) were required to submit a use permit application by December 16, 2022. Staff received 15 applications by December 16, 2022, and have been processing them accordingly. However, many of the applications have taken longer than originally anticipated to process and staff is concerned that several of the applications will not be considered by the Planning Commission prior to March 31, 2024. Therefore, staff propose to amend the CLUO to allow Category 1 and 2 licensees who have not received a decision on their use permit by March 31, 2024, to seek license renewal and continue to operate with a validly issued license through March 31, 2025.

Similarly, Category 4 licensees (Existing Licensees located outside Capay Valley that do not seek additional non-cultivation license types) may seek license renewal and continue to operate with a validly issued license through March 31, 2025. Staff is not yet aware how many Category 4 licensees will apply for a use permit by the December 15, 2023, deadline, but expects approximately 15-20 applications. The proposed amendment would allow Category 4 and the newly created Category 6 (only one licensee meets this criteria) licensees to seek license renewal and continue to operate with a validly issued license through March 31, 2026. Staff expects that most, if not all, licensees that apply for a use permit by December 15, 2023, will receive a decision on their application by March 31, 2025; however, this extension would provide assurances that they can continue cultivating in the event of unforeseen processing delays.

Office of County Counsel; Division of Environmental Health-Cannabis Unit.