Mendocino County Municipal Code Ch. 6.36 Cannabis Facilities Businesses

Unless otherwise defined in this Chapter, the terms and phrases used in this Chapter shall have the same definitions as provided in Chapter 10A.17 and Chapter 20.243.

"Cannabis Facility Business License" means a revocable, limited-term grant of permission to operate a cannabis processing, manufacturing, testing, retailing/dispensing, distributing, and/ or microbusiness within the County. The business license shall be in the form prescribed by the Tax Collector and must contain, at a minimum, the licensee's name, the business name, type of business, location of business, commencement and expiration dates of the license, and fee remitted. A Cannabis Facility Business License shall be required for the operation of any cannabis facility, as that term is defined in Section 20.243.030.

(Ord. No. 4394, § 1, 10-17-2017; Ord. No. 4410, § 1, 6-5-2018)

(A) It shall be unlawful for any Person to transact any business in the unincorporated area of Mendocino County for which a license is required by this Chapter, without possessing a valid and current Mendocino County Cannabis Facility Business License for such business issued by the Mendocino County Treasurer-Tax Collector (Tax Collector).

(B) Cannabis facilities shall be required to comply with other provisions of the Mendocino County Code, including but not limited to, Chapters 10A.17, 20.242, and 20.243, as applicable.

(C) All cannabis facilities, regardless of where located, shall comply with the following:

(1) Cannabis facilities other than Manufacturing Level 2 (Volatile) or Microbusinesses with a cultivation site shall not be allowed within a 600-foot radius of a youth-oriented facility, a school, a park, or any church or residential treatment facility, as those terms are defined in section 10A.17.020 of the Mendocino County Code, that is in existence at the time a Cannabis Facility Business License is applied for; Manufacturing Level 2 (Volatile) facilities and Microbusinesses with a cultivation site shall not be allowed within 1,000 feet of such places or facilities. The distance between the uses listed in the preceding sentence and the cannabis facility shall be measured in a straight line from the nearest point of the cannabis facility to the nearest point of any fenced, maintained or improved area where the users of the facility are typically present during normal hours of operation. A cannabis facility not in compliance with the setback requirement of this paragraph (1) shall not be issued a cannabis facility business license unless the facility is first issued an administrative permit pursuant to Chapter 20.243 for a reduction in this required setback. The setback requirement of this paragraph (1) shall not apply to retailers/dispensaries which were operating with an approved business license as of the effective date of the ordinance adopting this Chapter 6.36.

(2) A cannabis facility shall comply with the general limitations set forth in section 20.243.050, except for paragraph (B) of section 20.243.050.

(D) Persons applying for a Cannabis Facility Business License shall obtain a valid California State license required under MAUCRSA as soon as such State licenses become available.

(E) A Person who obtains a Cannabis Facility Business License under this Chapter 6.36 for a cannabis facility shall not be required to obtain a separate business license under Chapter 6.04 for the same activity.

(F) The business license requirement set forth in this Chapter shall be in addition to, and not in lieu of, any other licensing and permitting requirements imposed by any other federal, state, or local law.

(G) Cannabis facilities in existence prior to January 1, 2017, that had an approved County business license under Chapter 6.04 may continue to operate under that business license until that license is scheduled to be renewed, at which time the cannabis facility shall apply for a license under this Chapter 6.36.

(Ord. No. 4394, § 1, 10-17-2017; Ord. No. 4410, § 2, 6-5-2018; Ord. No. 4491, § 1, 5-25-2021; Ord. No. 4501, § 1, 2-1-2022)

The Board of Supervisors shall set license fees in an amount that covers all administrative costs for license issuance. The license fee shall be based on a flat rate set by Resolution passed by the Board of Supervisors. Cannabis facility business licenses shall be issued for the following facility types, as more particularly defined, described and limited in Chapter 20.243:

(A) Processing Facilities.

(B) Manufacturing Facilities.

(C) Testing Laboratories and Research Institutions.

(D) Retailers/Dispensaries.

(E) Distribution Facilities.

(F) Microbusinesses.

(Ord. No. 4394, § 1, 10-17-2017; Ord. No. 4410, § 3, 6-5-2018)

(A) ISSUING OFFICER. All business licenses required by this Chapter shall be issued by the Tax Collector upon completion and approval of a Cannabis Facility Business License application, providing all pertinent requirements are met, and payment of the proper fee is made in lawful money of the United States.

(B) TERM OF LICENSE. Business licenses issued pursuant to this Chapter shall be issued on an annual basis and shall be renewed annually. The period of the annual license shall commence July 1 of each year and expire June 30 of the following year. At the discretion of the Tax Collector, the initial license for a business to be issued under this Chapter may be issued for a shorter or longer period of time to best align with the July 1 through June 30 time period; in such cases, the Tax Collector shall prorate the applicable license fees on a quarterly basis.

(C) NUMBER OF LICENSES REQUIRED. A separate license is required for each separate place of business even if the businesses are owned or operated by the same Person. If more than one facility type is being conducted at one location, a separate license is required for each facility type.

(D) BOARD OF EQUALIZATION PERMIT. A State of California Board of Equalization (Board of Equalization) Seller's Permit is required to collect and remit sales tax to the Board of Equalization if the applicant intends to sell cannabis and/or cannabis products between license types or sell directly to qualified patients, primary caregivers, or adult use customers.

(E) ACCOUNTING. The Tax Collector shall deposit all business license fees to the proper fund in the County Treasury. The original copy of each license issued by the Tax Collector shall bear the County seal.

(F) No County employee responsible for implementing or enforcing the provisions of this Chapter may have a direct or indirect financial interest in, be employed by, or volunteer at, a cannabis facility.

(Ord. No. 4394, § 1, 10-17-2017; Ord. No. 4410, § 4, 6-5-2018)

Cannabis facilities may be located in the unincorporated areas of Mendocino County in conformance with Chapters 10A.17 of the Mendocino County Code, as well as the provisions of the Mendocino County Zoning Code, including but not limited to Chapters 20.242 and 20.243.

(Ord. No. 4394, § 1, 10-17-2017)

(A) The Office of the Tax Collector shall refer the application to the Department of Planning and Building Services, the Division of Environmental Health, and other departments or divisions as necessary, to verify that the application is in compliance with County Code provisions and that the applicant has valid County license(s), permit(s), and/or other approvals, as required, prior to issuing any County Cannabis Facility Business License. The Office of the Tax Collector shall charge the applicant all fees required under the Master Fee Schedule for these referrals.

(1) All County Cannabis Facility Business Licenses are provisional until a valid State of California license, as required under MAUCRSA, is verified.

(a) A copy of the State license issued pursuant to MAUCRSA must be filed with the Tax Collector within fifteen (15) days of issuance.

(2) If a cannabis facility is denied a state license under MAUCRSA, the provisional County Cannabis Facility Business License will become invalid.

(B) Applicants and every individual engaged in the management of, or employed by, the applicant shall be subject to a criminal history check, which shall include a Live Scan criminal history inquiry. The reasonable costs of a Live Scan criminal history inquiry pursuant to this section shall be the responsibility of the applicant and every individual engaged in the management of, or employed by, the applicant. Live Scan criminal history inquiries completed at a certified and approved Live Scan location shall be transmitted to the Sheriff or District Attorney for review. An application shall be denied if any of the following is determined to be true:

(1) The applicant or any individual engaged in the management of, or employed by, the applicant has been convicted of any crime listed in subdivision (b)(4) of California Business and Professions Code section 26057, or any crime that if committed in the State of California would have constituted any of the crimes listed in subdivision (b)(4) of California Business and Professions Code section 26057. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.

(2) The applicant or any individual engaged in the management of, or employed by, the applicant has one or more felony convictions, occurring prior to January 1, 2018, for violations of California Health and Safety Code section 11358 that involved pled and proven environmental violations, including but not limited to violations of California Fish and Game Code sections 1602, 5650 and 5652.

(3) The applicant or any individual engaged in the management of, or employed by, the applicant has been convicted of a felony offense, occurring after January 1, 2018, under California Health and Safety Code section 11358, 11359, or 11360, as amended by Proposition 64 § 8.4, effective November 9, 2016, or any crime that if committed in the State of California would have constituted a felony offense under California Health and Safety Code section 11358, 11359, or 11360, as amended by Proposition 64 § 8.4, effective November 9, 2016.

(4) The applicant or any individual engaged in the management of, or employed by, the applicant has a conviction under section 11366 of the California Health and Safety Code.

(5) The applicant or any individual engaged in the management of, or employed by, the applicant has a conviction under section 11366.5(b) of the California Health and Safety Code or any felony conviction under section 11366.5(a) of the California Health and Safety Code involving chemical extraction, chemical synthesis or a controlled substance other than marijuana.

(6) The applicant or any individual engaged in the management of, or employed by, the applicant has a conviction under section 11379.6 of the California Health and Safety Code.

(7) The applicant or any individual engaged in the management of, or employed by, the applicant is subject to a condition of probation, mandatory supervision, Post Release Community Supervision, parole or any other lawful order which prohibits the possession or cultivation of cannabis.

(Ord. No. 4394, § 1, 10-17-2017; Ord. No. 4422, § 1, 12-18-2018)

Upon review of an application for a Cannabis Facility Business License and payment of the license fee and any other fee required by the County for review of the application, the Office of the Tax Collector shall perform the application review as stated in Section 6.36.060 and issue a license unless substantial evidence in the record demonstrates one of the following bases for denial:

(A) The application is incomplete or inaccurate.

(B) The application or the facility is not in compliance with the provisions of the Mendocino County Code including but not limited to this Chapter and Chapters 10A.17, 20.242, and 20.243.

(C) The provision of false or misleading information by the Applicant to the County.

(D) The failure or refusal of the owner or operator/manager of a licensed facility to comply with any of the provisions of this Chapter.

(E) The failure or refusal to carry out the required policies and procedures or comply with the statements provided to the County with the business license application for the facility.

(F) The failure or refusal to cooperate fully with an investigation or inspection by the County.

A business license issued pursuant to this Chapter does not provide any exception, defense, or immunity from other laws, nor does it create an exception, defense or immunity to any Person in regard to potential criminal liability the Person may have for the production, distribution or possession of cannabis.

(Ord. No. 4394, § 1, 10-17-2017; Ord. No. 4410, § 5, 6-5-2018; Ord. No. 4491, § 2, 5-25-2021; Ord. No. 4501, § 1, 2-1-2022)

(A) A Cannabis Facility Business License renewal application and renewal fee must be submitted pursuant to Section 6.36.040(B). Failure to submit a renewal application will result in the automatic expiration of the Cannabis Facility Business License on the expiration date.

(B) A Cannabis Facility Business License may not be renewed if any of the following occurred during the previous year or currently exist: violations of or non- compliance with the license, these regulations, or any of the provisions of the Mendocino County Code, including, but not limited to, Chapter 10A.17 and Chapter 20.243.

(C) Cannabis Facility Business License renewal is subject to the laws and regulations effective at the time of renewal, which may be substantially different than the regulations in place at the time of the initial or previous application(s) and may require the submittal of additional information to ensure that new standards are met. Renewal applications shall be referred to all relevant departments of the County to determine compliance with the Mendocino County Code.

(Ord. No. 4394, § 1, 10-17-2017; Ord. No. 4410, § 6, 6-5-2018)

It shall be unlawful for any Person who engages in any business for which a Cannabis Facility Business License is required to fail, or refuse, to post the same in a conspicuous place in their place of business.

(Ord. No. 4394, § 1, 10-17-2017)

No license granted under this Chapter shall be transferable to any other Person or removable to any other location.

(Ord. No. 4394, § 1, 10-17-2017)

Cannabis facilities shall be required to enroll in and comply with all requirements of any Track and Trace system adopted and implemented by the County to track the production and distribution of cannabis. Cannabis facilities shall obtain and use unique identifiers from an approved source, maintain them in a readable state, comply with all data entry requirements and pay all required Track and Trace fees. Noncompliance with Track and Trace requirements shall constitute a violation of the Cannabis Facilities Business License.

(Ord. No. 4394, § 1, 10-17-2017)

(A) VIOLATION OF CANNABIS FACULTIES LAWS. It shall be a violation of this Chapter for a Person or his or her agent or employee to violate any local, or state, cannabis facilities-related law.

(B) LICENSE COMPLIANCE MONITORING. Compliance checks of each Cannabis facility may be conducted by the County. The County shall not enforce any cannabis facilities minimum age law against a person who otherwise would be in violation of such law because of the person's age if the violation occurs when the person is participating in a compliance check, and is supervised by a law enforcement official, a code enforcement official, or any peace officer.

(C) Causing, permitting, aiding, abetting, or concealing a violation of any provision of this Chapter shall constitute a violation of this Chapter.

(D) Violations of this Chapter are hereby declared to be public nuisances.

(Ord. No. 4394, § 1, 10-17-2017)

(A) TERMINATION OF LICENSE UPON EXPIRATION. A Cannabis Facility Business License expires if not renewed pursuant to Section 6.36.080 of this Chapter. Upon expiration, a Cannabis Facility Business license shall automatically be deemed terminated. Termination based on expiration shall not prevent a Person from submitting a new application for a Cannabis Facilities Business License.

(B) REVOCATION OF LICENSE AFTER HEARING. The Board of Supervisors of Mendocino County may revoke a Cannabis Facility Business License of any Person after finding that the Person was guilty of some act which would otherwise disqualify such entity from obtaining such license, or after finding that the Person transacted or operated its business in any manner contrary to any law, ordinance, chapter, rule or regulation. The Board of Supervisors may make the finding forming the basis for license revocation after hearing evidence thereon as any interested person may present at a public hearing held at least ten days prior to the meeting at which action on such revocation takes place. Any Person whose Cannabis Facility Business License is revoked in this manner shall be disqualified from obtaining a Cannabis Facility Business License unless the Board of Supervisors waives such disqualification.

(C) IMMEDIATE REVOCATION OF LICENSE, NO HEARING. After the State begins issuing licenses for Cannabis Facilities, the Cannabis Facility Business License shall be immediately revoked upon one or more of the following events occurring:

(1) Notification to the County that the State of California has revoked a State license issued pursuant to California Business & Professions Code sections 26000, et seq. or other applicable state law for a cannabis facility.

(2) Failure to obtain and maintain a valid and current state licenses pursuant to California Business & Professions Code sections 26000, et seq. or other applicable state law.

(Ord. No. 4394, § 1, 10-17-2017; Ord. No. 4410, § 7, 6-5-2018)

The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity. The use of one (1) or more remedies by the County shall not bar the use of any other remedy for the purpose of enforcing the provisions of this Chapter.

(Ord. No. 4394, § 1, 10-17-2017)

(A) The Tax Collector may issue a temporary Cannabis Facility Business License (a "temporary CFBL"), on a form prescribed by the Tax Collector, subject to the following conditions:

(1) The applicant shall submit all of the following:

(a) A written application for a Cannabis Facility Business License on a form prescribed by the Tax Collector.

(b) Payment of the Cannabis Facility License Fee.

(c) Payment of the business license review fee for zoning clearance review by the Department of Planning and Building Services.

(d) A completed application and payment of all fees for the relevant discretionary permit required by the Mendocino County Zoning Code.

(e) A form of indemnification agreement, to be prepared by the County, similar to that required for discretionary land use approvals pursuant to County Code section 1.04.120.

(2) Prior to issuance of a temporary CFBL, the Department of Planning and Building Services shall review applications for consistency with applicable zoning and building standards.

(3) Prior to issuance of a temporary CFBL, the Department of Planning and Building Services shall review the application for the relevant discretionary permit required by the Mendocino County Zoning Code and deem the application complete.

(4) Prior to issuance of a temporary CFBL, the Department of Planning and Building Services shall review the application and determine that the proposed project is exempt from the California Environmental Quality Act.

(5) The Division of Environmental Health shall review the application to determine if the project requires any permits from the Division.

(B) A temporary CFBL shall be issued subject to the following conditions:

(1) The temporary CFBL shall be valid for a period of 180 days and may be extended for additional 90-day periods at the discretion of the Tax Collector.

(2) A temporary CFBL is a conditional license and authorizes the holder thereof to operate a cannabis facility as would be permitted under the privileges of a Cannabis Facility Business License.

(3) Refusal by the Tax Collector to issue or extend a temporary CFBL shall not entitle the applicant to a hearing or appeal of the decision.

(4) A temporary CFBL does not obligate the County to issue a nontemporary Cannabis Facility Business License nor does the temporary CFBL create a vested right in the holder to an extension of the temporary CFBL, the granting of a subsequent nontemporary Cannabis Facility Business License, or the granting of any discretionary permit required by the Mendocino County Zoning Code.

(C) If a temporary CFBL is not extended by the Tax Collector or the discretionary permit required by the Mendocino County Zoning Code for the requested activity is denied by the County, the temporary CFBL shall terminate immediately and the applicant shall cease all cannabis facility operations at the subject location. The County shall immediately notify the relevant State licensing authority regarding such termination.

(D) The County shall not issue a temporary CFBL after December 31, 2018.

(Ord. No. 4394, § 1, 10-17-2017; Ord. No. 4410, § 8, 6-5-2018; Ord. No. 4491, § 3, 5-25-2021; Ord. No. 4501, § 1, 2-1-2022)