Monterey County Municipal Code Ch. 7.90 Commercial Cannabis Permits

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Editor's note— Ord. No. 5293, § 1, adopted Dec. 5, 2017, amended Ch. 7.90 in its entirety to read as herein set out. The former Ch. 7.90, §§ 7.90.010—7.90.180, pertained to commercial medical cannabis permits, and derived from Ord. No. 5272, § 1, adopted July 19, 2016.

A. Pursuant to Article XI, Section 7 of the California Constitution, the County of Monterey may adopt and enforce ordinances and regulations not in conflict with general laws to protect and promote the public health, safety, and welfare of its citizens.

B. The federal Controlled Substances Act (21 U.S.C. § 801, et seq.) prohibits, except for certain research purposes, the possession, distribution, and manufacture of cannabis, and there is no medical necessity exception to prosecution and conviction under the Controlled Substances Act.

C. The federal government issued guidelines for states and local governments that have enacted laws authorizing cannabis related conduct, requiring them to implement strong and effective regulatory and enforcement systems that will address the threat that cannabis activity could pose to public safety, public health, and other law enforcement interests.

D. On November 5, 1996, California voters approved Proposition 215, the Compassionate Use Act of 1996 (Health and Safety Code § 11362.5, "CUA"), an initiative that exempted certain patients and their primary caregivers from criminal liability under state law for the possession and cultivation of cannabis for medical purposes. One of the stated purposes of the CUA is to ensure that seriously ill Californians have the right to obtain and use cannabis for medical purposes where that medical use has been recommended by a physician.

E. On January 1, 2004, Senate Bill 420, the Medical Marijuana Program Act (Health and Safety Code §§ 11362.7-11362.83, "MMP"), became law to clarify the scope of the CUA and to facilitate the prompt identification of qualified patients and their primary caregivers.

F. On October 9, 2015, the State enacted the Medical Marijuana Regulation and Safety Act (former Business and Professions Code § 19300, et seq., "MMRSA"). MMRSA created a state licensing program for commercial medical cannabis activities.

G. On July 12, 2016, the Monterey County Board of Supervisors adopted inland zoning regulations establishing criteria for issuing local land use permits pursuant to the MMRSA (Ordinance Number 5270, amending sections of Title 21 and adding Chapter 21.67 to the Monterey County Code), and on July 19, 2016 the Monterey County Board of Supervisors adopted regulations establishing criteria for issuing local business permits pursuant to the MMRSA (Ordinance Numbers 5272 and 5273, codified at Monterey County Code Chapters 7.90 and 7.95). These ordinances were to become operative only if the Board of Supervisors submitted a County tax on commercial medical cannabis activities to the voters, the voters approved the tax, and the tax was certified by the County pursuant to Section 15372 of the California Elections Code. On November 8, 2016, the voters approved the tax (Measure Y, codified at Monterey County Code Chapter 7.100). On December 13, 2016, the tax was certified pursuant to Section 15372 of the Elections Code and Ordinance Numbers 5270, 5272, and 5273 became operative. Chapter 21.67 provided a one-year amortization period for commercial medical cannabis activities that were legally established prior to August 12, 2016 to obtain all required County permits, licenses, and entitlements, or to terminate their operations. This one-year amortization period ended on August 12, 2017.

H. On November 8, 2016, by statewide initiative, the voters enacted the Adult Use of Marijuana Act ("AUMA"). AUMA created a state licensing program for commercial adult-use cannabis activities.

I. On June 27, 2017, the State enacted the Medicinal and Adult-Use of Cannabis Regulatory and Safety Act (Business and Professions Code § 26000, et seq., "MAUCRSA"), which combined MMRSA and AUMA into a single state licensing scheme for both medicinal and adult-use cannabis. MAUCRSA allows counties and cities to maintain local regulatory authority over commercial cannabis activities. The state will not issue a state license without first receiving authorization from the applicable local jurisdiction.

J. On December 5, 2017, the Board of Supervisors adopted Ordinance Number 5292 to amend Title 21 of the Monterey County Code to regulate both adult-use and medical commercial cannabis activities in the inland area of unincorporated Monterey County. The Board also adopted a Resolution of Intent to adopt an ordinance amending the Monterey County Coastal Implementation Plan, Parts 1 and Part 2 (Title 20, coastal zoning ordinance) to make corresponding changes in the coastal area, and to amend the text of the North County Land Use Plan.

K. On January 30, 2018, the Board of Supervisors adopted Resolution Number 18-026 to approve a Joint Exercise of Powers Agreement establishing the California Cannabis Authority ("CCA"), and appoint Treasurer-Tax Collector Mary Zeeb as the primary representative of the County to serve as a member on the Board of Directors of the CCA.

L. On February 7, 2018, the California Coastal Commission certified Monterey County LCP Amendment number LCP-3-MCO-18-0004-1 (ordinance and North County Land Use Plan amendment) as submitted by the County.

M. On March 20, 2018, the Board of Supervisors adopted the ordinance and North County Land Use Plan amendment, as certified by the Coastal Commission (Ordinance No. 5299, amending sections of Title 20 and adding Chapter 20.67 to the Monterey County Code).

N. On November 6, 2018, the Board of Supervisors adopted Ordinance Number 5306 to amend Title 21 of the Monterey County Code to change commercial cannabis activities from a conditional use allowed subject to a Use Permit, to a principle use allowed subject to an Administrative Permit. The Board of Supervisors also adopted Resolution of Intent Number 18-413 to amend the Monterey County Coastal Implementation Plan, Part 1 (Title 20, coastal zoning ordinance) to change commercial cannabis activities from a conditional use allowed subject to a Coastal Development Permit, to a principle use allowed subject to a Coastal Administrative Permit. The County has submitted Resolution of Intent Number 18-413 to the Coastal Commission for certification. If certified by the Coastal Commission, the ordinance will then need to be adopted by the Board of Supervisors.

O. On June 18, 2019, the Board of Supervisors adopted Ordinance Numbers 5311 and 5312 to add Chapters 20.69 and 21.69 to the Monterey County Code to establish a five-year pilot program for outdoor commercial cultivation and related activities in certain coastal and inland unincorporated areas. Ordinance Number 5312 adding Chapter 20.69 to establish a pilot program in the coastal area will not be operative until certified by the Coastal Commission.

P. It is the intent of the County of Monterey to have a strong and effective regulatory and enforcement system with regard to cannabis that addresses threats to public safety, health and other law enforcement interests through robust controls and procedures that are effective in practice, and that comply with state law and federal guidelines.

Q. This ordinance provides regulations for the local permitting of commercial cannabis operations under specified conditions in the unincorporated areas of the County. This ordinance, together with Chapters 7.02, 20.67, 21.67, 20.69, and 21.69 of the Monterey County Code requiring necessary licenses and land use entitlements for all commercial cannabis operations, are intended to establish criteria for issuing local permits pursuant to the MAUCRSA and to establish an effective regulatory and enforcement system consistent with the guidance issued by the United States Department of Justice.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, § 1, 11-5-2019)

This Chapter applies in the unincorporated area of the County of Monterey.

(Ord. No. 5293, § 1, 12-5-2017)

The following words and phrases shall have the meanings set forth below when used in this Chapter. The definitions in Chapter 20.67 for the coastal zone and Chapter 21.67 for the inland zone shall otherwise apply.

A. "A-designation" means a designation placed on a County permit issued pursuant to this Chapter for cannabis or cannabis products that are intended for adults who are twenty-one (21) years of age and over and who do not possess a physician's recommendation.

B. "Applicant" means an owner applying for issuance, renewal, or modification of a permit issued pursuant to this Chapter.

C. "Application" means that form provided by the Appropriate Authority in accordance with this Chapter for the purpose of seeking a commercial cannabis business permit.

D. "Appropriate Authority" means the Monterey County Cannabis Program Manager or his or her designee.

E. "California Cannabis Authority" is a joint powers authority, of which Monterey County is a member, established among California counties to create a comprehensive data platform that tracks cannabis data through a chain of production to consumption; to track payments among commercial partners and to various state, local agencies, and other commercial cannabis participants; and to provide data analytics designed to support local cannabis regulatory and tax compliance efforts.

F. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code.

G. "Cannabis product" has the same meaning as in Section 11018.1 of the California Health and Safety Code.

H. "Canopy" means all areas occupied by any portion of a cannabis plant, inclusive of all vertical planes, whether contiguous or noncontiguous on any one site.

I. "Commercial cannabis activity" means the cultivation, possession, manufacture, processing, storing, laboratory testing, packaging, labeling, transporting, distribution, delivery, or sale of cannabis or a cannabis product.

J

"Commercial cannabis business permit" means a permit issued by the County to an applicant to perform commercial cannabis activities under this Chapter.

K. "Commercial cannabis operation" means an entity that engages in commercial cannabis activities.

L. "County" means the County of Monterey.

M. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform operated or controlled by the retailer.

N. "Financial interest" has the same definition as in Section 15004 of Title 4 of the California Code of Regulations, as it may be amended.

O. "Hearing Officer" means a person appointed by the County to conduct an administrative hearing under this Chapter. The appointed Hearing Officer shall be an impartial decision-maker selected by a process that eliminates risk of bias, such as:

1. An administrative law judge provided by the State of California Office of Administrative Hearings to function as the County Hearing Officer pursuant to Chapter 14 of Part 3 of Division 2 of Title 3 of the California Government Code;

2. A person selected randomly from a panel of attorneys willing to serve as a Hearing Officer; or

3. An independent contractor assigned by an organization or entity which provides hearing officers.

P. "Identification card" has the same definition as in Section 11362.7 of the California Health and Safety Code, as it may be amended.

Q. "M-designation" means a designation placed on a County permit issued pursuant to this Chapter for cannabis or cannabis products that are intended for to be sold for use pursuant to the Compassionate Use Act of 1996 (Section 11362.5 of the California Health and Safety Code) by patients who possess a physician's recommendation.

R. "Manager" means any individual who participates in the day-to-day direction, control, and management of the commercial cannabis operation.

S. "Medicinal cannabis" or "medicinal cannabis product" means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Section 11362.5 of the California Health and Safety Code) by a medicinal cannabis patient in California who possesses a physician's recommendation.

T. "Owner" means any of the following:

1. A person with an aggregate ownership interest of twenty percent (20%) or more in the commercial cannabis operation applying for a permit, unless the interest is solely a security, lien, or encumbrance.

2. The chief executive officer of a nonprofit or other entity.

3. A member of the board of directors of a nonprofit.

4. An individual who will be participating in the direction, control, or management of the person applying for a permit, which includes any of the following:

a. A partner of a commercial cannabis operation that is organized as a partnership;

b. A managing member of a commercial cannabis operation that is organized as a limited liability company; and

c. An officer or director of a commercial cannabis operation that is organized as a corporation.

U. "Permittee" means a person issued a County permit under this Chapter.

V. "Person" means an individual, firm, sole proprietorship, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit and includes the plural as well as the singular number.

W. "Premises" has the same definition as in Section 15000(ccc) of Title 4 of the California Code of Regulations, as it may be amended.

X. "Primary caregiver" has the same definition as in Section 11362.7 of the California Health and Safety Code, as it may be amended.

Y. "Property owner" means the individual or entity who is the record owner of the subject property where commercial cannabis activities are located or are proposed to be located.

Z. "Qualified patient" has the same definition as in Section 11362.7 of the California Health and Safety Code, as it may be amended.

AA. "State" means the state of California.

BB. "State license" means a state license issued pursuant to California Business & Professions Code Section 26000, et seq.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, § 2, 11-5-2019; Ord. No. 5324, § 1, 3-17-2020; Ord. No. 5398, § 2, 3-21-2023)

A. Any person who intends to engage in a commercial cannabis activity shall obtain a commercial cannabis business permit for the fixed location in which the commercial cannabis activity is to occur.

B. It is unlawful for any person to conduct, engage in or allow to be conducted or engaged in a commercial cannabis activity in the unincorporated portion of Monterey County, unless the County has issued such person a permit under this Chapter and the permit is in effect. Notwithstanding the above, the permits issued under this Chapter do not provide any protection or immunity for any person from state or federal laws, or from prosecution pursuant to any applicable state or federal laws.

C. The fact that an applicant possesses other types of state or County permits or licenses, shall not exempt the applicant from obtaining a commercial cannabis business permit under this Chapter, nor shall the terms and conditions of any other such permit or license modify the requirements of a permit granted under this Chapter, except that the commercial cannabis business permit must be consistent with the land use entitlement issued by the County pursuant to Title 20 or Title 21 of the Monterey County Code.

D. The applicant must receive all necessary land use entitlements as required by Titles 20 and 21 of the Monterey County Code before the County will issue a commercial cannabis business permit under this Chapter.

E. All the following cannabis activities are exempt from the commercial cannabis business permit requirements of this Chapter:

1. Possession, storage, manufacturing using a non-volatile solvent, or transportation of medicinal cannabis, or cultivation of up to one hundred (100) square feet total canopy area of medicinal cannabis by a qualified patient, as that term is defined in Section 11362.7 of the California Health and Safety Code, provided the qualified patient, possesses, stores, manufactures, transports, or cultivates cannabis exclusively for his or her personal medical use, and does not provide, donate, sell, or distribute cannabis to any other person. Qualified patients shall, upon request, provide appropriate documentation to law enforcement demonstrating that they have a valid doctor's recommendation to use cannabis for medicinal purposes.

2. Possession, storage, manufacturing using a non-volatile solvent, transportation of medicinal cannabis, or cultivation of up to one hundred (100) square feet of canopy area of medicinal cannabis by a primary caregiver on behalf of a qualified patient, within the meaning of Section 11362.7 of the California Health and Safety Code, provided the primary caregiver does not receive remuneration for these activities except for compensation in full compliance with Section 11362.765(c) of the California Health and Safety Code. Primary caregivers shall, upon request, provide appropriate documentation to law enforcement demonstrating that they are a primary caregiver for a qualified patient.

3. Possession, processing, storage, transportation, or donation of not more than twenty-eight and one-half (28.5) grams of cannabis or not more than eight grams of concentrated cannabis to persons twenty-one (21) years of age or older by persons twenty-one (21) years of age or older.

4. The cultivation of up to six cannabis plants by persons twenty-one (21) years of age or older as allowed pursuant to Section 11362.1(a) of the California Health and Safety Code.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, § 3, 11-5-2019; Ord. No. 5398, § 3, 3-21-2023)

A. Each application for the establishment of a commercial cannabis business permit shall be filed on the form and in the manner prescribed by the Appropriate Authority. The Appropriate Authority shall be responsible for administering the application process as set forth in this Chapter.

B. If an applicant holds a valid State provisional or annual license pursuant to California Business & Professions Code Section 26050.2, the applicant must submit an application for a commercial cannabis business permit within thirty (30) days of the final approval of the applicable land use entitlement pursuant to Titles 20 and 21 of the Monterey County Code.

C. In all cases, the application shall contain, without limitation, the following documentation:

1. All applicants' names, primary telephone numbers, mailing addresses, e-mail addresses, and a twenty-four (24) hour or nighttime contact telephone number.

2. The physical address(es) and assessor's parcel number(s) (APN or APNs) of the property upon which the proposed commercial cannabis operation will be located, and the global positioning system (GPS) coordinates of any area that is proposed to contain commercial cannabis activities.

3. Proof of ownership of premises, or if the premises on which the commercial cannabis operation is to occur is rented or leased, written permission from the property owner containing the property owner's notarized signature that authorizes the tenant or lessee to engage in commercial cannabis activities at the site.

4. A premises diagram pursuant to Section 15006 of Title 4 of the California Code of Regulations, as it may be amended, showing, without limitation, a site plan, building layout, a description of where each commercial cannabis activity will occur, all entry ways and exits to the site, loading zones and all areas in which cannabis and cannabis products will be stored, grown, or dispensed. The diagram must include a description of the proposed total canopy area of any cultivation and/or nursery operation, including the maximum square footage to be cultivated for the annual term of the permit.

5. If the applicant is a business entity, information regarding the entity, including, without limitation, the legal business name, registered name(s) under which the business will operate, address of record for the entity, contact telephone number(s), its legal status, and proof of registration with, or a certificate of good standing from, the California Secretary of State, as applicable.

6. The full name, date of birth, present address and telephone number for all owners, managers, employees, and persons having a twenty percent (20%) or more financial interest in the commercial cannabis activity that is the subject of the application.

7. All owners and persons having a twenty percent (20%) or more financial interest must submit fingerprints and other necessary information for a criminal background check conducted by any entity authorized by the California Department of Justice to perform Live Scan fingerprinting services.

8. A statement of whether the applicant is applying for a commercial cannabis business permit with a M-designation, an A-designation, or both.

9. The employer shall verify that all owners, managers, and employees possess valid government-issued identification and are twenty-one (21) years of age or older. Acceptable forms of identification are an unexpired document issued by a federal, state, county, or municipal government that contains the name, date of birth, physical description, and picture of the individual.

10. The names and addresses of any other commercial cannabis operations currently being operated by the applicant, or that had previously been operated by the applicant and a statement of whether the authorization for any such operation had been revoked or suspended and, if so, the reason therefore.

11. A full description of the proposed activities and products of the commercial cannabis operation, including proposed hours of operation and the number of employees.

12. A description of the type of State license(s) that will be required for the proposed operations pursuant to California Business and Professions Code Section 26000, et seq. If a State provisional license(s) is held pursuant to California Business and Professions Code Section 26050.2, a photocopy of all applicable State provisional licenses.

13. A detail of the procedures to be utilized at the premises including a description of how chemicals, pesticides and fertilizers will be stored, handled, used, and disposed of; and if applicable, manufacturing methods, odor control methods and devices, how odor control devices will be maintained, the transportation process, inventory procedures, and quality control procedures.

14. A waste disposal plan.

15. If applicable, provide the applicant's seller's permit number issued pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California Revenue and Taxation Code or indicate that the applicant is currently applying for a seller's permit.

16. If applicable, the federal tax identification number. If the applicant is a sole proprietorship, the applicant shall submit the social security number or individual taxpayer identification number of the sole proprietor.

17. A statement by the applicant that it is able to comply with all laws regulating businesses in the state of California and that it shall maintain compliance during the term of the permit.

18. Authorization for the County, its agents and employees to seek verification of the information contained in the application. Owners must complete and update an agent authorization form, as needed.

19. Certification, under penalty of perjury, that all the information contained in the application is true and correct. If applicable, an agent authorization form must be completed and updated by the applicant.

20. Any other information required by the Appropriate Authority.

D. If an applicant wishes to withdraw an application, a written request to withdraw shall be submitted to the Appropriate Authority.

1. Application fees for a withdrawn application will not be refunded.

2. An applicant may reapply at any time following the withdrawal of an application but will be required to submit a new application and pay the required application fee.

3. If applicable, an applicant shall file a cessation of business form with the Appropriate Authority within five (5) business days of cessation of existing business operations.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, § 4, 11-5-2019; Ord. No. 5324, §§ 2—4, 3-17-2020; Ord. No. 5365, § 1, 10-26-2021; Ord. No. 5373, § 1, 3-15-2022; Ord. No. 5398, § 4, 3-21-2023)

A. The Appropriate Authority shall review the application for a commercial cannabis business permit and associated documents and shall require, if he or she deems necessary, additional information to complete the application. The Appropriate Authority may deem the application incomplete if it does not contain all required information and documents. Applicants must submit all required information and documents to the Appropriate Authority within thirty (30) days receipt of an incomplete notice.

B. An application shall not be deemed complete unless all required application fees have been paid.

C. Each commercial cannabis business permit shall be granted for a one-year period and shall expire one year after the date of its issuance.

D. Upon review of a complete application for a commercial cannabis business permit, the Appropriate Authority shall grant the application if:

1. The proposed commercial cannabis activities will comply with all the requirements of the state and the Monterey County Code;

2. The applicant has received all necessary land use entitlements as required by Titles 20 and 21 of the Monterey County Code;

3. The proposed commercial cannabis activities will comply with all provisions of this Chapter;

4. If applicable, the applicant has obtained a valid seller's permit required pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California Revenue and Taxation Code; and

5. All responsible County departments have reviewed and approved issuance of the permit.

E. The Appropriate Authority shall deny any application that meets any of the following criteria:

1. The applicant has knowingly made a false statement of material fact or has knowingly omitted a material fact from the application;

2. Any owner, manager, employee, or persons having a twenty percent (20%) or more financial interest in the commercial cannabis activity has been convicted of a felony or a drug related misdemeanor reclassified by Section 1170.18 of the California Penal Code (Proposition 47) within the past ten (10) years. A conviction within the meaning of this Section means a plea or verdict of guilty or a conviction following a plea of nolo contendere;

3. Any person who is listed on the application is a licensed physician making patient recommendations for medical cannabis pursuant to Section 11362.7 of the California Health and Safety Code;

4. If applicable, the applicant failed to obtain or maintain a valid seller's permit required pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California Revenue and Taxation Code;

5. Any person who is listed on the application is less than twenty-one (21) years of age;

6. The proposed or provisionally permitted commercial cannabis operation does not comply with the provisions of the Monterey County Code or state law; or

7. The applicant has not received all necessary land use entitlements as required by Titles 20 and 21 of the Monterey County Code.

F. If the Appropriate Authority intends to deny the application, the Appropriate Authority shall specify in writing the reasons for the denial of the application and notify the applicant that the decision shall become final unless the applicant seeks an appeal pursuant to Section 7.90.120 of this Chapter within ten (10) calendar days of the date of service of the Appropriate Authority's decision. Service of the decision shall be provided in accordance with the requirements set forth in Section 7.90.130 of this Chapter.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, §§ 5—7, 11-5-2019; Ord. No. 5324, § 5, 3-17-2020; Ord. No. 5373, § 2, 3-15-2022; Ord. No. 5398, § 5, 3-21-2023)

A. Each commercial cannabis business permit shall expire one year after the date of its issuance, regardless of whether it is modified during its annual term and may be renewed annually on the date of its issuance.

B. A permittee shall seek modification of a commercial cannabis business permit before making changes to aspects of the commercial cannabis operation that alter any of the information submitted pursuant to Section 7.90.050 of this Chapter. A Department of Cannabis Control Science Amendment must be submitted and approved if amending the State Cultivation Plan.

C. Any commercial cannabis business permit may be modified by the Appropriate Authority upon the submission of a modification application by the permittee, and upon determination by the Appropriate Authority that the applicant meets the standards for a grant of application pursuant to Section 7.90.060 and none of the criteria listed in Section 7.90.070(F) apply. At the time of consideration of a modification application, the Appropriate Authority shall consider current compliance with this Chapter.

1. A permit may be modified two times during its annual term by the Appropriate Authority to modify the canopy limit allowed by the permit pursuant to Section 7.90.050(C)(5) of this Chapter.

2. A permit may be modified three times during its annual term by the Appropriate Authority to modify any other terms delineated in Section 7.90.050 of this Chapter.

D. Any commercial cannabis business permit may be renewed by the Appropriate Authority upon the submission of a renewal application by the permittee, and upon determination by the Appropriate Authority that the applicant meets the standards for grant of application pursuant to Section 7.90.060 and none of the criteria listed in Section 7.90.070(F) apply. At the time of consideration of a renewal application, the Appropriate Authority shall consider compliance with this Chapter in the prior term.

E. Any application for modification or renewal shall be filed at least forty-five (45) calendar days before expiration of the permit. If any of the documentation and information supplied by the applicant pursuant to Section 7.90.050 has changed since the grant of the permit, applicant shall submit updated information and documentation with the application for modification or renewal and shall provide such other information as the Appropriate Authority may require.

F. Any application for modification or renewal shall be denied if:

1. The application is filed fewer than forty-five (45) calendar days before the permit's expiration;

2. The permittee fails to conform to the criteria set forth in this Chapter;

3. The permittee is delinquent in payment of any County taxes;

4. The permittee's State license(s) is suspended or revoked at the time of the application; or

5. The permit is suspended or revoked at the time of the application.

G. If a modification or renewal or modification application is denied, an applicant may file a new application pursuant to this Chapter.

H. An application for modification or renewal shall not be deemed complete until all application fees have been paid.

I. If the Appropriate Authority intends to deny the modification or renewal, the Appropriate Authority shall specify in writing the reasons for the denial of the modification or renewal and notify the permittee that the decision shall become final unless the permittee seeks an appeal pursuant to Section 7.90.120 of this Chapter within ten (10) calendar days of the date of service of the Appropriate Authority's decision. Service of the decision shall be provided in accordance with the requirements set forth in Section 7.90.130 of this Chapter.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, § 8, 11-5-2019; Ord. No. 5365, § 2, 10-26-2021; Ord. No. 5373, § 3, 3-15-2022; Ord. No. 5398, § 6, 3-21-2023)

The filing of an application for a commercial cannabis business permit, for renewal of a commercial cannabis business permit, for modification of a commercial cannabis business permit, and appeals shall be accompanied by payment of such fees as the Board of Supervisors may establish to recover the cost of administration of this Chapter. Applicants and permittees must pay all relevant fees in full within twenty-four (24) hours of submitting their application, renewal, modification request, or appeal. Applicants and permittees are responsible for the costs of inspections, investigations, and any other fee-associated activity established pursuant to this Chapter. Fees, fines, and costs specified by this Chapter shall be as established by the Board of Supervisors and as set forth in the Monterey County Fee Resolution, pursuant to Chapter 1.40 of the Monterey County Code, as amended from time to time.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, § 9, 11-5-2019; Ord. No. 5373, § 4, 3-15-2022; Ord. No. 5398, § 7, 3-21-2023)

A. A commercial cannabis business permit does not create any interest of value, is not transferable or assignable, and does not run with the land.

B. Whenever any sole proprietorship, corporation, limited liability company, partnership or other type of business entity permitted under this Chapter sells or transfers all of its corporate stock, partnership interest or other business interest in a commercial cannabis operation, a new commercial cannabis business permit shall be obtained pursuant to Section 7.90.050 of this Chapter.

C. Whenever any sole proprietorship, corporation, limited liability company, partnership or other type of business entity permitted under this Chapter changes its business entity type, a new commercial cannabis business permit shall be obtained pursuant to Section 7.90.050 of this Chapter.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, § 10, 11-5-2019; Ord. No. 5398, § 8, 3-21-2023)

A. Throughout the term of the commercial cannabis business permit, each permittee shall not violate this Chapter and shall comply with all of the following as appropriate for the cannabis business type:

1. For cannabis cultivation permittees, the canopy area of cannabis located at any premises shall not exceed the maximum canopy limits set by state law and the limits set forth in the commercial cannabis business permit. The maximum canopy square footage specified in the commercial cannabis business permit is the basis of the County's commercial cannabis business tax pursuant to Chapter 7.100 of the Monterey County Code.

2. A permittee shall not change or alter the premises in a manner which materially or substantially alters the premises, the usage of the premises, or the mode or character of the business operation conducted from the premises, from the site plan contained in the diagram on file with the application, unless and until written approval by the Appropriate Authority has been obtained. For purposes of this section, material or substantial physical changes of the premises, or in the usage of the premises, shall include, but not be limited to, a substantial increase or decrease in the total area of the licensed premises previously diagrammed, or any other physical modification resulting in substantial change in the mode or character of business operation.

3. No cannabis shall be smoked, ingested, or otherwise consumed on the premises.

4. No person under the age of twenty-one (21) shall be employed or otherwise engaged in the operation of a commercial cannabis activity.

5. No person under the age of twenty-one (21) shall be allowed on the premises, unless the permittee is a retail facility and sells medicinal cannabis, in which case persons who are at least eighteen (18) years of age and hold a valid physician's recommendation for medicinal cannabis shall be allowed on the premises.

6. There shall not be a physician located in or around any commercial cannabis operation at any time for the purpose of evaluating patients for the issuance of a medical marijuana recommendation or card.

7. Each permittee shall conspicuously display its state and County permits and licenses required to operate at entrance of the premises. Each commercial cannabis operation that engages in delivery or transportation shall carry a copy of the permits and licenses in all vehicles that deliver or transport cannabis or cannabis products.

8. Devices or techniques that minimize offsite detection of cannabis odors to every extent feasible shall be utilized and maintained in good working order during the life of the operation.

9. No permittee may hold a license from the State Department of Alcoholic Beverage Control to sell alcoholic beverages, nor may the commercial cannabis operation include a business that sells alcoholic beverages. No alcohol may be stored, sold, dispensed, or consumed on the premises.

10. A permittee shall not sell any tobacco or nicotine products on or at any premises permitted under this Chapter. No tobacco or nicotine products may be stored, dispensed, or consumed in the area licensed and permitted for commercial cannabis activities. Tobacco or nicotine products may be stored on the premises in areas not licensed and permitted for commercial cannabis activities and consumed in a specifically designated smoking area(s).

11. All cannabis and cannabis products shall be stored in a secured and locked safe room, safe or vault, and in a manner to prevent diversion, theft, and loss, except for limited amounts of cannabis used for display purposes, samples, or immediate sale.

12. Each permittee shall keep accurate records of its commercial cannabis activities pursuant to the requirements of Sections 26160 and 26162 of the California Business and Professions Code, as they may be amended.

13. Each permittee shall comply with the applicable security requirements of Sections 15042 through 15047 of Title 4 of the California Code of Regulations, as they may be amended.

14. Each permittee shall notify the County immediately after discovering any of the following: diversion, theft, loss or any criminal activity involving the commercial cannabis operation; significant discrepancies identified during inventory; or any other breach of security.

15. Each permittee shall provide the Appropriate Authority with a twenty-four (24) hour or nighttime contact telephone number for County use, and provide a name, telephone number, and e-mail address of a community relations contact to whom the public can provide notice of problems associated with the commercial cannabis operation. The permittee shall make a good faith effort to resolve problems without the need for intervention by the County.

16. Any new owners, managers, employees, or persons having a twenty percent (20%) or more financial interest must submit their information to the Appropriate Authority pursuant to Section 7.90.050 and 7.90.070 of this Chapter within five (5) calendar days.

17. All owners, managers, employees, or other persons otherwise engaged in the operation of the commercial cannabis operation shall display a laminated or plastic-coated identification badge issued by the permittee at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the permittee's "doing business as" name and state license number(s), the individual's full name, an employee number exclusively assigned to that individual for identification purposes, and a color photograph of the individual that clearly shows the full front of the individual's face and that is at least one inch in width and one and one-half inches in height.

18. No owners, managers, employees, or persons having a twenty percent (20%) or more financial interest in the commercial cannabis operation may have been convicted of a felony or a drug related misdemeanor reclassified by Section 1170.18 of the California Penal Code (Proposition 47) within the past ten (10) years. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.

19. A permittee shall keep a current roster on the premises that contains the names and dates of birth of all employees.

20. A permittee shall not be delinquent in the payment of all applicable County taxes and fees.

21. The property owner(s) who own(s) the premises where the commercial cannabis operation is located must, at all times, have all necessary and operative land use entitlements as required by Titles 20 and 21 of the Monterey County Code.

22. When applicable, the permittee must legally hold all required State Licenses under the Medicinal and Adult-Use of Cannabis Regulatory and Safety Act (Business & Professions Code § 26000, et seq.), as it may be amended, and under an other applicable state laws.

23. A permittee shall comply with all applicable federal, state, and local laws, including without limitation, County building, zoning, and health codes.

24. A permittee shall transmit all required information to the California Cannabis Authority or Metric directly, as prescribed by the County Treasurer-Tax Collector. The data shall be transmitted by using a secure-access Application Program Interface from a California Cannabis Authority approved licensee-facing software integrator, or through manual submission to the California Cannabis Authority.

25. A permittee must file a cessation of business form with the Appropriate Authority as soon as the permittee is aware the business will close, or at the latest by the day business operations cease.

26. Each permittee must package and label cannabis products pursuant to the requirements of Sections 26120 and 26122 of the California Business and Professions Code, as they may be amended.

27. Each permittee must follow all pesticide use requirements of local, state and federal law.

28. Each permittee must maintain all weighing devices in compliance with local, state or federal law and comply with Chapter 7.60 of the Monterey County Code regarding device registration with the County.

29. Each permittee must follow all local, state and federal requirements for waste disposal.

30. Each permittee shall not use any hazardous, flammable or explosive substances to process or manufacture cannabis products on site unless all necessary permits have been obtained from the Environmental Health Bureau of the Monterey County Health Department, and all other appropriate agencies.

31. Each permittee shall protect all food products from contamination at all times, and all food handlers must be clean, in good health and free from communicable diseases. All food products, food storage facilities, food-related utensils, equipment, and materials shall be approved, used, managed and handled in accordance with Sections 113700 through 114437 of the California Health and Safety Code, and California Retail Food Code, as they may be amended.

32. Each permittee shall ensure that all cannabis products sold or distributed at a commercial cannabis operation must be from an approved source in accordance with Title 4 of the California Code of Regulations, as it may be amended. Cannabis products sold or distributed at a commercial cannabis operation must also be acceptable to the County Health Officer based on a determination of conformity with applicable laws, or, in the absence of applicable laws, with current public health principles and practices, and generally recognized industry standards that protect public health.

B. At any time between eight a.m. and eight p.m. and without notice, County officials may enter the premises for the purpose of observing compliance of the commercial cannabis operation with this Section, including access to and inspection of the commercial cannabis operation's records, books, accounts, financial data, and any and all data relevant to its permitted activities for the purpose of conducting an audit or examination.

C. It is unlawful for any person having any responsibility over a commercial cannabis operation to refuse to allow, impede, obstruct, or interfere with an inspection, or the review of the copying of records and monitoring (including recordings) including, but not limited to, the concealment, destruction, and falsification of any recordings or records.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, § 11, 11-5-2019; Ord. No. 5324, § 6, 3-17-2020; Ord. No. 5373, § 5, 3-15-2022; Ord. No. 5398, § 9, 3-21-2023)

Any of the following shall be grounds for suspension or revocation of a commercial cannabis business permit, based on substantial evidence and following notice and public hearing pursuant to Section 7.90.120 of this Chapter.

A. Failure to comply with one or more of the terms and conditions of the commercial cannabis business permit;

B. The commercial cannabis business permit was granted on the basis of false material information, written or oral, given willfully or negligently by the applicant;

C. Any act or omission by a permittee in contravention of the provisions of this Chapter;

D. Any act or omission by a permittee in contravention of state law, or the Monterey County Code;

E. Any act or omission by a permittee that results in the suspension or revocation of the applicable use permit issued under Titles 20 or 21 of the Monterey County Code for the commercial cannabis activities;

F. Any act or omission by a permittee that results in the denial, revocation or suspension of that permittee's state license;

G. Failure to pay all applicable taxes and fees required by the County;

H. Conduct of the commercial cannabis operations in a manner that constitutes a nuisance, where the permittee has failed to comply with reasonable conditions to abate the nuisance.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5320, § 13, 11-5-2019; Ord. No. 5398, § 12, 3-21-2023)

Editor's note— Ord. No. 5398, § 10, adopted March 21, 2023, repealed § 7.90.110, which pertained to cultivation, manufacture, waste and storage requirements, and derived from Ord. No. 5293, § 1, adopted Dec. 5, 2017; and Ord. No. 5320, § 12, adopted Nov. 5, 2019. Subsequently, § 12 renumbered the former § 7.90.130 as § 7.90.110.

A. If the Appropriate Authority determines that grounds for suspension or revocation of the commercial cannabis business permit exist pursuant to Section 7.90.110 of this Chapter, the Appropriate Authority shall issue a written notice of intention to suspend or revoke the permit, as the case may be. The notice of intention shall be served on the permittee, as reported on the permit, and on the property owner, as reported on the latest equalized assessment roll. The notice of intention shall be served in accordance with the requirements set forth in Section 7.90.130 of this Chapter. The notice of intention shall describe the property, the intention to revoke or suspend the permit, the grounds for suspension or revocation, the action necessary to abate the violation, the time limit for compliance, and the right to a hearing. The notice of intention shall notify the permittee and the owner of the opportunity to request a hearing before a Hearing Officer to present evidence as to why the permit should not be suspended or revoked, and shall notify them of the ten-day deadline to submit a written request for a hearing.

B. The permittee and owner shall have ten (10) calendar days from the service of the notice of intention to submit a written request for a hearing before the Hearing Officer. Failure to submit the written request for a hearing shall be deemed a waiver of the right to challenge the suspension or revocation of the commercial cannabis business permit and a failure to exhaust administrative remedies. If the hearing is not timely requested, the Appropriate Authority may suspend or revoke the permit in accordance with the notice of intention.

C. Upon receipt of a timely written request for a hearing, the Appropriate Authority shall set a date for a hearing to be held within sixty (60) days of receipt of the request, unless an immediate threat to the public health, safety and welfare necessitates an earlier hearing date. Notice of the hearing, including the time, date, and location of the hearing, shall be served in accordance with the requirements set forth in Section 7.90.130 of this Chapter.

D. Hearing by the Hearing Officer.

1. The Hearing Officer is authorized to conduct hearings, issue subpoenas, receive evidence, administer oaths, rule on questions of law and the admissibility of evidence, prepare a record of the proceedings, and render decisions on the suspension or revocation of the commercial cannabis business permit.

2. In any proceeding before a Hearing Officer, oral testimony offered as evidence shall be taken only on oath or affirmation, and the Hearing Officer, his/her clerk, or other designee shall have the power to administer oaths and affirmations and to certify to official acts.

3. All parties to the hearing shall have the opportunity to testify, introduce exhibits, call and examine witnesses, and cross examine opposing witnesses on any matter relevant to the issues.

4. The Hearing Officer may postpone the hearing date upon good cause shown, continue the hearing during the course of the hearing, and make such other procedural orders and rulings as he or she deems appropriate during the course of the hearing.

5. Within thirty (30) calendar days after the close of the hearing, the Hearing Officer shall issue a written decision, including a statement of the basis for the decision. The Hearing Officer's written decision shall constitute the final administrative decision of the County.

E. In the event a civil action is initiated to obtain enforcement of the decision of the Hearing Officer, and judgment is entered to enforce the decision, the person against whom the order of enforcement has been entered shall be liable to pay the County's total costs of enforcement, including reasonable attorney fees.

F. If neither permittee nor owner, nor their authorized representatives, appear at the noticed hearing, such failure to appear shall constitute an abandonment of the hearing request and a failure to exhaust administrative remedies.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5398, § 12, 3-21-2023)

Editor's note— Ord. No. 5398, § 10, adopted March 21, 2023, repealed § 7.90.120, which pertained to packaging and labeling requirements, and derived from Ord. No. 5293, § 1, adopted Dec. 5, 2017. Subsequently, § 13 renumbered the former § 7.90.140 as § 7.90.120.

Wherever this Chapter requires the County to serve notice to an applicant, permittee, or property owner such notice shall be given by the Appropriate Authority, in writing, and shall be delivered either by personal delivery or by certified U.S. mail, postage prepaid, return receipt requested. In addition, any such notice may be posted at the physical address of the premises on the date of the mailing of notice.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5398, § 14, 3-21-2023)

Editor's note— Ord. No. 5398, § 14, adopted March 21, 2023, amended § 7.90.150 by renumbering it as § 7.90.130.

A. The remedies provided by this Chapter are cumulative and in addition to any other remedies available at law or in equity.

B. It shall be unlawful for any person to violate any provision, or to fail to comply with any of the requirements, of this Chapter. Any person violating any of the provisions or failing to comply with any of the mandatory requirements of this Chapter shall be guilty of a misdemeanor. No proof of knowledge, intent, or other mental state is required to establish a violation.

C. Any condition caused or allowed to exist in violation of any of the provisions of this Chapter shall be deemed a public nuisance and shall, at the discretion of County, create a cause of action for penalty pursuant to Chapters 1.20 and 1.22 of the Monterey County Code, and any other action authorized by law.

D. Each and every violation of this Chapter shall constitute a separate violation and shall be subject to all remedies and enforcement measures authorized by the Monterey County Code or otherwise authorized by law. Additionally, as a public nuisance, any violation of this Chapter shall be subject to injunctive relief, disgorgement of any payment to the County of any and all monies unlawfully obtained, costs of abatement, costs of restoration, costs of investigation, attorney fees, restitution, and any other relief or remedy available at law or in equity. The County, including the Office of the District Attorney and the Office of the County Counsel, may also pursue any and all remedies and actions available and applicable under state and local laws for any violations committed by the commercial cannabis operator or persons related thereto, or associated with, the commercial cannabis activity.

E. For purposes of administration and enforcement of this Chapter generally, the Appropriate Authority may from time to time promulgate such administrative rules and procedures consistent with the purpose and intent of this Chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5373, § 6, 3-15-2022; Ord. No. 5398, § 14, 3-21-2023)

Editor's note— Ord. No. 5398, § 14, adopted March 21, 2023, amended § 7.90.160 by renumbering it as § 7.90.140.

This Chapter became operative on December 13, 2016, upon adoption by County voters of a County commercial cannabis business tax (codified at Chapter 7.100 of the Monterey County Code) and certification of the results of the vote on the tax pursuant to Section 15372 of the California Elections Code.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5398, § 14, 3-21-2023)

Editor's note— Ord. No. 5398, § 14, adopted March 21, 2023, amended § 7.90.170 by renumbering it as § 7.90.150.

If any section, subsection, sentence, clause or phrase of this Chapter is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Chapter. The Board of Supervisors hereby declares that it would have passed this Chapter and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid.

(Ord. No. 5293, § 1, 12-5-2017; Ord. No. 5398, § 14, 3-21-2023)

Editor's note— Ord. No. 5398, § 14, adopted March 21, 2023, amended § 7.90.180 by renumbering it as § 7.90.160.