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Conduct a noticed public hearing to consider the adoption of an ordinance establishing a permanent prohibition of the establishment of commercial cannabis activities, including commercial cultivation of medicinal and recreational cannabis, and commercial cannabis delivery, distribution, transportation, processing, manufacturing, retail operations, microbusinesses, collectives, cooperatives, and testing facilities of medicinal and recreational cannabis in the unincorporated areas of Solano County
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Published Notice Required? Yes _X___ No _ _
Public Hearing Required? Yes _X___ No _ _
DEPARTMENTAL RECOMMENDATION:
The Department of Resource Management recommends that the Board of Supervisors:
1. Read the proposed ordinance by title only and waive further reading by majority vote; and
2. Find the proposed ordinance is exempt from further environmental review under Section 15061(b)(3) of Title 14 of the California Code of Regulations because there is no possibility that the project may have a significant effect on the environment; and
3. Adopt the proposed ordinance amending Chapter 28 (Zoning Regulations) establishing a permanent prohibition on commercial cannabis activities, including commercial cultivation of medicinal and recreational cannabis, and commercial cannabis delivery, distribution, transportation, processing, manufacturing, retail operations, microbusinesses, collectives, cooperatives, and testing facilities of medicinal and recreational cannabis in the unincorporated areas of Solano County.
SUMMARY:
The Board of Supervisors adopted an interim urgency ordinance establishing a 45-day moratorium on all commercial cannabis activities on December 6, 2016. Pursuant to Government Code section 65858 (a), the Board of Supervisors extended the urgency ordinance for 10 months and 15 days on January 10, 2017 and approved a final one-year extension of the urgency ordinance on November 14, 2017. The existing moratorium prohibiting commercial cannabis activities will remain in force until December 6, 2018.
On November 14, 2017, the Board of Supervisors directed staff to draft a permanent ordinance prohibiting all commercial cannabis activities. On August 2, 2018, the Solano County Planning Commission held a public hearing and considered the proposed ordinance recommending the prohibition of commercial cannabis activities in the unincorporated areas of Solano County. After receiving public comment and discussion amongst the Commissioners, the Commission voted to not recommend the ordinance prohibiting commercial cannabis activities to the Board of Supervisors.
FINANCIAL IMPACT:
The costs to analyze County options for regulating cannabis is included in the Department of Resource Management’s Planning Services budget. The costs associated with preparing the agenda item are nominal and absorbed by the Department’s FY2018/19 Adopted Budget.
DISCUSSION:
History
Since the passage of the initial interim urgency ordinance in December 2016, the Board of Supervisors hosted a variety of speakers to discuss various aspects of cannabis and cannabis regulations. Speakers included independent consultants in the cannabis industry and leaders within the State of Colorado’s cannabis regulatory agencies. Staff held a community meeting at the County Administration Center, spoke at Neighborhood Watch meetings in Green Valley and Elmira to obtain information from residents, businesses and industry operators on development of personal and commercial cannabis regulations. The Board of Supervisors established an ad-hoc committee on the subject of cannabis and designated Supervisors Erin Hannigan and John Vasquez to work with staff to conduct site visits of cannabis operations. This ad-hoc cannabis committee conducted tours of indoor and outdoor cannabis cultivation sites, an indoor nursery facility, two manufacturing operations as well as two testing facilities.
Per Board request, the overall review of cannabis regulations was separated into two parts: non-commercial (personal and caregiver) and commercial activities. The personal and caregiver cannabis cultivation ordinance was reviewed and recommended for adoption by the Planning Commission in September 2017 and adopted by the Board in October 2017.
On November 14, 2017, the Board conducted a public hearing to consider the adoption of the one-year extension of the interim urgency ordinance related to commercial cannabis. At that same meeting, the Board received a report from the ad-hoc Cannabis Committee regarding their research, initial findings and recommendations regarding potential commercial cannabis license types that could be given further consideration in certain zoning districts. After considering the ad-hoc Committee’s recommendations, public comment, and discussion amongst the Board members, the Board directed staff to prepare an ordinance prohibiting all types of cannabis business activities in the unincorporated area. The primary reasons for this direction were that the unincorporated areas of Solano County lack suitable water, wastewater treatment, and road infrastructure needed for most commercial and industrial type cannabis uses in rural areas. It was also noted that most of the cities in Solano County, as well as near-by counties, have approved some type of commercial cannabis activities, including cannabis retailers that provide delivery services. The majority of the Board members found that there was not a compelling need to duplicate such uses in unincorporated Solano County where public services are limited.
The Planning Commission held a public hearing on August 2, 2018 to consider the proposed ordinance prohibiting commercial cannabis activities in the unincorporated areas of Solano County (Attachment A - Ordinance). After receiving public comments and a discussion of the ordinance, the Planning Commission voted to recommend the Board not adopt the proposed ordinance prohibiting commercial cannabis activities citing that cannabis activities such as cultivation, manufacturing, distribution, and testing had the potential to be viable uses in unincorporated areas of the county (Attachment B - Planning Commission Resolution No.4659).
Update on State and Local Cannabis Regulations
Staff continues to track the cannabis regulatory environment and attached is a summary of current state laws and an update on local jurisdictions actions on cannabis regulations. (Attachment C - Update on State and Local Cannabis Regulations).
State cannabis laws and regulations continue to change and evolve. Since the Board of Supervisors directed staff to prepare a permanent ordinance prohibiting all commercial cannabis activities, new cannabis license types have been defined by the Bureau of Cannabis Control, and the Department of Food and Agriculture (CalCannabis). The Planning Commission was apprised of the license -type changes discussed below but did not include any reference to these licenses in their recommendation.
Events
The Bureau added two license types in December 2017 that address cannabis events: a “Cannabis Event Organizer License” and a “Temporary Cannabis Event License”. Local approval is required for a temporary cannabis event license, but not for a cannabis event organizer license. An individual would apply for a Cannabis Event Organizer License in order to operate a Temporary Cannabis Event for up to four days. Currently, Temporary Cannabis Events are limited to County Fair and Agricultural Association buildings; however, there is a bill (Assembly Bill No. 2020 (2017-2018 Regular Session)) that if signed by the Governor, would allow local jurisdictions to approve any venue for Temporary Cannabis Events. State law currently provides, “temporary event licenses shall only be issued in local jurisdictions that authorize such events.” (Business & Professions Code §26200(e).) This language is retained in AB-2020.
The ordinance currently does not include a prohibition on temporary cannabis events. The effect of this is that if the ordinance is adopted as proposed, a temporary cannabis event could be held on a case-by-case basis in unincorporated Solano County if the County were to authorize the event. If the County did not authorize a proposed temporary cannabis event, then such an event could not be held. Alternately, the Board could choose to modify the ordinance to include temporary cannabis events as a prohibited commercial cannabis activity (see Alternative 2, below). The effect of this would be that no temporary cannabis activities could occur at the Solano County Fairgrounds or anywhere else in the unincorporated County.
Processors
CalCannabis added a “Processor License” which is described as trimming, drying, curing, grading, or packaging of cannabis and non-manufactured cannabis products. Most likely the processor license could be obtained by a business owner that specializes in trimming the product or the processing license could be used alongside a cultivator license. This license type was included as a prohibited commercial cannabis activity in the ordinance as the functions of this license are similar to the types of cannabis activities the Board requested be prohibited.
Collectives and Cooperatives
Collectives and cooperatives, as defined by the Bureau of Cannabis Control, are included in the list of prohibited commercial cannabis activities in the proposed ordinance. Collectives and cooperatives were given a one-year window of legal protection after the Bureau began issuing state licenses (January 9, 2018). After one-year, beginning January 9, 2019, all collectives and cooperatives that wish to continue to engage in commercial business will need to obtain a state license and comply with any local requirements. The requirement to obtain a state license would not apply to individual patients or to caregivers growing for no more than five patients.
Senate Bill 829 approved by the Legislature in 2018 and pending the Governor’s signature would allow licensed cannabis businesses to provide “compassionate care” free and untaxed cannabis or cannabis products to qualifying low-income medicinal patients. It is uncertain how this bill, if it becomes law, would impact the current regulations governing collectives and cooperatives.
The Board of Supervisors adopted a Personal and Caregiver Medicinal Cannabis Cultivation Ordinance in October 2017. The Personal and Caregiver Ordinance addresses caregiver medicinal cultivation in a non-commercial context; allowing a caregiver to grow up to 6 mature plants or 12 immature plants for up to 5 patients with approval of a Caregiver Administrative permit from the Department of Resource Management.
Proposed Cannabis Ordinance
The ordinance being considered by the Board of Supervisors prohibits all commercial cannabis activities that are licensed by the State, unless specifically exempted out of this prohibition by the Board. It is intended that this ordinance include in its prohibition all future commercial cannabis license types developed and issued by the State that require local approval, along with those that currently exist. Current state commercial cannabis license types that require local approval are: cannabis testing laboratory; distributor; transporter; storefront retailer; non-storefront retailer (delivery); microbusiness; collective/cooperative; cultivator; nursery; manufacturer; and processer. As discussed above, an additional commercial cannabis state license type, Temporary Cannabis Event Licenses, was created by the State since the Board provided direction and is currently not included in the proposed ordinance, although the Board can decide to prohibit this license type, too, as indicated in Alternative 2 below.
Environmental Analysis
In accordance with the California Environmental Quality Act (CEQA), it has been determined that this project is exempt from further environmental review under Section 15061(b)(3) of Title 14 of the California Code of Regulations because there is no possibility that the project may have a significant effect on the environment.
Public Notice Requirement
Consistent with Government Code Section 63858, a public hearing notice was published in the Fairfield Daily Republic, Dixon Tribune, Vacaville Reporter, Winters Express, Vallejo Times Herald, Rio Vista River News Herald and Benicia Herald at least 10 days prior to the public hearing. (Attachment D - Notice of Public Hearing).
ALTERNATIVES:
The Board may choose to:
1. Adopt the Ordinance as directed by the Board in November 2017.
2. Modify the Ordinance to add prohibition on temporary cannabis events and approve the modified Ordinance; or
3. Not adopt the Ordinance and allow the establishment of commercial cannabis activities; including commercial cultivation of medicinal and recreational cannabis; cannabis event organizer and temporary cannabis event licenses, the commercial delivery, distribution, transportation, processing, collectives, cooperatives, manufacturing, retail operations, microbusinesses, and testing facilities of medicinal and recreational cannabis within the unincorporated areas of Solano County.
Staff does not recommend that the Board adopt Alternative 3 based on past Board direction.
OTHER AGENCY INVOLVEMENT:
Resource Management staff has consulted with County Counsel and met with the Board ad-hoc cannabis committee, the County Agricultural Commissioner, representatives from the Department of Health and Social Services, and the Sheriff’s office through the process of preparing the proposed ordinance. A representative from the Solano County Farm Bureau spoke in favor of the proposed ordinance at the August 2, 2018 Planning Commission meeting.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION