Ventura County Municipal Code Art. 1 Licensing of Cannabis Operations

(a) Purpose. This Chapter establishes standards to encourage a well-regulated cannabis industry, to eliminate illegal cannabis operations and access to illegal and untested cannabis and to protect the health, life, safety and general welfare of residents, particularly vulnerable minors by establishing local regulatory oversight of adult-use cannabis activities including cultivation and other commercial cannabis activities licensed by California.

(b) Applicability. The standards of this Chapter shall apply to all commercial cannabis activities in unincorporated portions of the County of Ventura, in the AE, M2 and M3 zoning districts in compliance with Division 8 (Planning and Development) of the Ventura County Code of Ordinances. Nothing in this Chapter is intended, nor shall it be construed, to: (i) allow persons to engage in conduct that endangers others or causes a public nuisance; (ii) exempt commercial cannabis activity from compliance with all applicable County codes and ordinances including, but not limited to, applicable zoning and land use regulations, as well as any applicable State laws; or (iii) protect any person from prosecution pursuant to any laws that may prohibit the cultivation, sale, distribution, possession, use of and/or any other activity associated with controlled substances, or to authorize conduct that is unlawful under State or federal law. Moreover, cultivation, sale, possession, distribution, and use of cannabis remain violations of federal law as of the date of adoption of the ordinance creating this Chapter and this Chapter is not intended to, and does not authorize conduct or acts that violate federal law and does not protect any person from arrest or prosecution under those federal laws. Persons engaged in cannabis activities assume any and all risk and any and all liability that may arise or result under State and federal laws from the cultivation, sale, possession, distribution, use of cannabis and/or any other cannabis activity.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

The following words and phrases, whenever used in this Chapter, shall have the meanings defined in this Section unless the context clearly requires otherwise:

(a) "Applicant" means a person or entity who has submitted an application for a cannabis business license or renewal of a cannabis business license issued pursuant to this Chapter.

(b) "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, including, but not limited to, separated resin. "Cannabis" also means medical and non-medical marijuana. "Cannabis" does not include industrial hemp, as defined in section 11018.5 of the Health and Safety Code as may be amended.

(c) "Cannabis business license" means a license issued by the County to an applicant to engage in commercial cannabis activities under this Chapter.

(d) "Commercial cannabis nursery cultivation" means the production of only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis pursuant to a nursery cannabis license issued under Business and Professions Code section 26000, et seq.

(e) "Commercial cannabis activity" means any activity, recreational or medicinal, including the cultivation, nursery cultivation, distribution, processing, storing, or sale of cannabis and/or cannabis products as permitted by this Chapter. "Commercial cannabis activity" does not include personal use.

(f) "Commercial cannabis cultivation" means any activity involving the planting, growing, harvesting, drying, curing, or trimming of cannabis.

(g) "Commercial cannabis distribution" means the procurement, sale, and transport of cannabis and cannabis products between cannabis licensees pursuant to a distributor cannabis license under Business and Professions Code section 26000, et seq.

(h) "Commercial cannabis operation" means any person or entity that engages in commercial cannabis activities.

(i) "Commercial cannabis processing" means all activities associated with drying, curing, trimming, storing, packaging, and labeling of cannabis or nonmanufactured cannabis products.

(j) "County Executive Officer" means the County Executive Officer of the County of Ventura, his or her deputies or any other County officer charged with the administration of the provisions of this Chapter, including to issue a license, license renewal or notice of denial of a license to any applicant.

(k) "Day care center" means licensed infant centers, preschools, extended day care facilities, and school age child care centers, and includes child care centers licensed pursuant to Section 1596.95 of the Health and Safety Code, but does not include family day care homes.

(l) "Distribution" means the procurement, sale, and/or transport of cannabis and cannabis products between two (2) or more cannabis businesses pursuant to Business and Professions Code section 26000, et seq, as may be amended.

(m) "Drug rehabilitation center" means a State or local agency, a licensed private or nonprofit entity or combination thereof that operates drug abuse rehabilitation programs or offers medical or psychotherapeutic treatment for dependency on psychoactive substances.

(n) "Engaged or engages in cannabis operations" means the commencing, conducting, operating, managing or carrying on of a cannabis business or operation, the exercise of corporate or franchise powers, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the unincorporated area of the County or coming into the unincorporated area of the County from an outside location to engage in such activities. A person shall be deemed engaged in cannabis operations within the County, if, among other things:

(1) Such person or person's employee maintains a fixed place of business within the unincorporated area of the County for the benefit or partial benefit of such person;

(2) Such person or person's employee owns or leases real property within the unincorporated area of the County for business purposes;

(3) Such person or person's employee regularly maintains a stock of tangible personal property in the unincorporated area of the County for sale in the ordinary course of business;

(4) Such person or person's employee regularly conducts solicitation of business within the unincorporated area of the County;

(5) Such person or person's employee performs work or renders services in the unincorporated area of the County; or

(6) Such person or person's employee utilizes the streets within the unincorporated area of the County in connection with the operation of motor vehicles for business purposes.

(o) "Greenhouse" means a permanent structure, including glasshouses, conservatories, hothouses, or other similar structures for the covered propagation and growing of plants, constructed with a translucent roof and/or walls.

(p) "Licensee" means a person issued a County cannabis business license under this Chapter.

(q) "Park" means an area of land used for community recreation owned or operated by a public entity. This definition does not include any State or federal park or forestland.

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

(s) "Personal use" means the cultivation, harvesting, drying, or processing of cannabis plants with the intent to possess, smoke, or ingest cannabis or cannabis products for one's own individual use or by a primary caregiver for their qualified patient(s) in accordance with State law.

(t) "Premises" means the designated structure or structures and land specified in the State application that is owned, leased or otherwise held under the control of the applicant where the commercial cannabis activity will be or is conducted.

(u) "Property owner" means the individual or entity who is the record owner of the lot where commercial cannabis activities are located or are proposed to be located.

(v) "Residential neighborhood" means any of the urban residential zones enumerated in Section 8104-3 as of March 4, 2020.

(w) "School" means an institution of learning for minors, whether public or private, offering a regular course of instruction required by the Education Code, or any preschool facility. This definition includes a nursery school, preschool, kindergarten, elementary school, middle or junior high school, senior high school, or any special institution of education, but it does not include a vocational or professional institution of higher education, including a community or junior college, or day care centers or youth centers.

(x) "State" means the State of California.

(y) "State license" means a State license for cannabis issued pursuant to California Business and Professions Code sections 26000, et seq., as may be amended, or other authority.

(z) "State licensing authorities" means the California Department of Food and Agriculture or CalCannabis, the California Department of Public Health or the Manufactured Cannabis Safety Branch, the California Department of Consumer Affairs or the Bureau of Cannabis Control, or other State department(s), bureau(s) and/or office(s) that issue cannabis licenses.

(aa) "Treasurer-Tax Collector" means the elected Treasurer-Tax Collector of the County of Ventura, his or her deputies or any other County officer charged with the issuing licenses, noticing denials of licenses or renewing of licenses to applicants pursuant to the provisions of this Chapter.

(bb) "Youth centers" means any public or licensed private facility that is primarily used to host recreational or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades, or similar amusement park facilities.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) Allowed uses for commercial cannabis activities.

(1) Commercial cannabis activities shall only be permitted in zoning districts in which such activities are specifically designated in Division 8 and only to the extent authorized in the applicable provisions of this Chapter.

(2) All commercial cannabis activity shall comply with applicable State laws and regulations, as may be amended, including all license, approval, inspection, reporting and operational requirements imposed by the State and its regulatory agencies having jurisdiction over commercial cannabis activity, including but not limited to the Bureau of Cannabis Control, the Department of Fish and Wildlife, the Department of Food and Agriculture, the Department of Public Health, the Department of Pesticide Regulation, the Department of Tax and Fee Administration, and the State Water Resources Control Board.

(3) State law requires dual licensing at the State and local level for all commercial cannabis activity. All commercial cannabis businesses shall be required to diligently pursue and obtain a State cannabis license, and shall comply at all times with the applicable State licensing requirements and conditions.

(4) Any person who intends to engage in a commercial cannabis activities in the unincorporated area of the County shall obtain a cannabis business license, pursuant to Section 2704. A separate cannabis business license shall be required for each person or entity for each fixed location in which the commercial cannabis activity is to occur. A cannabis business license shall be obtained before the commencement of business or, if the business is in operation and a license possessed, renewed prior to the expiration of such license. 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 area of the County, unless the County has issued such person a business license under this Chapter and the license is in effect.

(5) A commercial cannabis operation engaging in commercial cannabis cultivation or commercial cannabis nursery cultivation shall be considered an "agricultural activity, operation or facility" for purposes of Section 8114-2.1.1.

(6) For the purpose of the California Land Conservation Act of 1965 (Government Code, § 51200 et seq.), also known as the Williamson Act, and the Ventura County Land Conservation Act Guidelines, commercial cannabis cultivation and commercial cannabis nursery cultivation shall be considered an "agricultural use" and the following associated activities are considered "compatible uses": drying, curing, testing, trimming, packaging and distribution.

(b) Requirements for commercial cannabis activities. The following commercial cannabis activities are permitted within the AE, M2 and M3 zoning districts in compliance with Division 8 (Planning and Development) of the Ventura County Code of Ordinances, subject to both the requisite State license and cannabis business license, pursuant to Section 2704 and the conditions required by this Section:

(1) Commercial Cannabis Cultivation. Commercial cannabis cultivation shall:

(A) Be located in a pre-existing permanent greenhouse or indoor facility;

(B) Not exceed five hundred (500) acre of total canopy;

(C) Not occur outdoors or via hoop house cultivation.

(2) Commercial cannabis nursery cultivation. Commercial cannabis nursery cultivation shall:

(A) Be located in a pre-existing permanent greenhouse or indoor facility;

(B) Not exceed one hundred (100) acres total canopy;

(C) Be non-flowering and not emit odor.

(3) Commercial cannabis processing for the purposes of supporting commercial cannabis cultivation or commercial cannabis nursery cultivation by the licensee.

(4) Commercial cannabis distribution for the purposes of self-distribution supporting commercial cannabis cultivation or commercial cannabis nursery cultivation by the licensee.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) The premises, as defined in Section 2701, shall not be located within a 1,200-foot radius of schools, day care centers, youth centers, drug rehabilitation centers, parks or residential neighborhoods, in existence on March 4, 2020. The distance specified in this Section shall be the horizontal distance measured in a straight line from the premises to the property line of the parcel.

(b) Blackout shading shall be used to limit artificial lighting emanating from a greenhouse or indoor facility.

(c) Commercial cannabis activities licensed by this Chapter shall comply with all pesticides guidelines pursuant to section 26060 of the Business and Professions Code.

(d) Commercial cannabis activities licensed by this Chapter shall comply with local regulations and State law.

(e) Commercial cannabis activities licensed by this Chapter shall also comply with all State requirements for the applicable State cannabis license.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) The Ventura County executive officer's office shall administer the cannabis business licenses program.

(b) The County shall issue cannabis business licenses for the following commercial cannabis activities and an applicant may possess more than one (1) license:

(1) Commercial cannabis cultivation;

(2) Commercial cannabis nursery cultivation;

(3) Commercial cannabis processing;

(4) Commercial cannabis distribution.

(c) An applicant shall file an application for a cannabis business licenses with the Ventura County executive officer pursuant to Section 2707.

(d) All cannabis business licenses shall be valid for one (1) year from the date of issuance by the County Executive Officer, unless suspended or revoked by the County pursuant to Section 2717.

(e) The County shall not renew a cannabis business licenses if the licensee is not complaint with this Chapter.

(f) Possession of other types of State or County permits or licenses, shall not exempt the applicant from obtaining a cannabis business license under this Chapter.

(g) The following cannabis activities are exempt from the cannabis business license requirements of this Chapter:

(1) 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 (8) grams of concentrated cannabis by persons twenty-one (21) years of age or older.

(2) Cultivation in a legally established, secure dwelling or an enclosed, legally established, secure building that is accessory to a dwelling of up to six (6) cannabis plants by persons twenty-one (21) years of age or older as allowed pursuant to Health and Safety Code section 11362.1(a), as may be amended.

(h) An applicant must receive all necessary land use entitlements which are final, un-appealable, approved and issued, before the County will issue a cannabis business license under this Chapter. However, to apply for a cannabis business license, an applicant may submit a land use entitlement/permit application that has been accepted by the planning and development department in accordance with Section 8107-47.4.

(i) The terms and conditions of any other State or County permits or licenses shall not modify the requirements of a license granted under this Chapter, except that the cannabis business license must be consistent with the land use entitlement.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) Each application for a cannabis business license shall be filed with the County Executive Officer on the form and in the manner prescribed by the County.

(b) The application shall contain, without limitation, the following documentation:

(1) Background and Contact Information:

(A) All applicants' and agents' names, mailing addresses, phone numbers, and email addresses.

(B) Name, address and telephone number for all business owners, managers, supervisors, employees, and persons having a ten (10) percent or more financial interest in the commercial cannabis activity that is the subject of the application or, if the applicant is an entity, having a ten (10) percent or more financial interest in the entity.

(C) A twenty-four-hour contact phone number.

(D) Written proof or copy of government-issued identification (i.e., California driver's license, California identification card, or certified birth certificate) that all applicants, business owners, supervisors, and employees are eighteen (18) years of age or older for State medical licenses, and twenty-one (21) years of age or older for State non-medical licenses.

(E) The names, addresses and license numbers of any and all 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 has been revoked or suspended and, if so, the reason therefore.

(2) Information on the Operation:

(A) A full description of the proposed activities and products of the commercial cannabis operation.

(B) Proposed hours of operation.

(C) Number of employees.

(D) Location and premises diagram.

(i) The physical address and assessor's parcel number(s) (APN) of the tax assessor's parcels that constitute the lot upon which the proposed commercial cannabis operation will be located.

(ii) Premises Diagram. A diagram of the premises, drawn to scale, with sufficient detail to enable ready determination of the bounds of each of the State licensed premises, or proposed State license premises, showing without limitation, the boundaries of the lot on which the premises will be located; if the proposed premises consists of only a portion of a property, the diagram shall be labeled indicating which part of the property is the proposed premises and what the remaining property is/will be used for. All roads and water crossings on the property, sources of water used, including the location of waterbody diversions, pump locations and distribution system, and location, type and capacity of each storage unit to be used for cultivation, the APN, location of pesticide storage facility and hazardous material storage; site plan and, if applicable, floor plan of all buildings and structures, which illustrate all entry ways and exits to the building and/or structure, loading zones and all areas, in which, commercial cannabis activities are proposed to occur.

(E) Authority to Operate. 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.

(F) State Information.

(i) A copy of the applicant's State cannabis licenses or application(s) for a State cannabis license.

(ii) The State cannabis license type, pursuant to Business and Professions Code section 26050, as may be amended, for proposed commercial cannabis operation, including whether the activity is medical or non-medical.

(G) Land Use Entitlement/Permit. A copy of the approved and/or issued land use entitlement or land use entitlement application accepted by planning and development for the proposed commercial cannabis operation. If the applicant does not have a final, un-appealable, approved and issued land use entitlement at the time of applying for a cannabis business license, the applicant may select concurrent processing. The applicant shall notify the County Executive Officer if their land use entitlement application is approved, denied or appealed and whether the applicant would like concurrent processing of the business license application during the appeal. The applicant is responsible for all license processing fees, including if the applicant fails to notify to the County Executive Officer as required by this Section or provides late notification. If the following is not included in the land use entitlement it shall also be submitted as part of the application.

(H) Cultivation Plan. A cultivation plan including total canopy size and production setting.

(3) Business Entity Requirements:

(A) If the applicant is a business entity or any form of entity, information regarding the entity, including, without limitation:

(i) The name and address of the entity;

(ii) The entity's legal status; and

(iii) Proof of registration with, or a certificate of good standing from, the California Secretary of State.

(4) Applicant Acknowledgement:

(A) A statement by the applicant that the applicant has the ability to comply with all laws regulating businesses in the State as well as all requirements of this Chapter and the County Code and that it shall and will maintain compliance during the term of the license.

(B) Agreeing to indemnify, defend and hold harmless the County, its officers, officials, agents and employees from any claim, action, or proceeding against the County, its officers, officials, agents or employees arising from a commercial cannabis operation or to attack, set aside, void or annul, in whole or in part, an approval of the application by the County or issuance of a license. In addition, applicant will complete a defense and indemnification agreement on a form provided by the County.

(C) Authorization for the County, its agents and employees to access all premises, during standard operating hours, upon which cannabis operations are occurring or intend to occur, including, but not limited to, initial site visits prior to issuance or renewal of a license, and compliance checks.

(5) Certification, under penalty of perjury, that all the information contained in the application is true and correct.

(c) An applicant shall also submit all documentation as required by Section 2706.

(d) An applicant shall submit to the County Executive Officer an application for a cannabis business license with all required documents, plus as many copies of the application and supporting documentation as required, and the application fee, pursuant to Section 2712, using the method and location for submission as determined by the County Executive Office.

(e) An applicant may withdraw or suspend their application by submitting a written request for either action. Requests must be delivered or mailed to the County Executive Office. Withdrawn applications may be eligible for a pro-rated refund of fees upon request. If an application is withdrawn and the applicant later wishes to proceed, the applicant must submit a new application. Suspended applications will not be eligible for a refund. Reactivation of a suspended application will require a written request for reactivation that must be delivered or mailed to the County Executive Office.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

In addition to the application submitted pursuant to Section 2705, an applicant shall provide the following to the County executive officer.

(a) Criminal Background Check. All business owners, supervisors, employees, and any other persons having at least a twenty percent (20%) financial interest, unless the interest is solely a security, lien, or encumbrance, must go through a live scan background check that discloses no felonies in accordance with Business and Professions Code section 26057, as may be amended. Except that, pursuant Business and Professions Code section 26057, if the business owners, supervisors, employees, and any other persons having at least a twenty percent (20%) financial interest has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the County Executive Officer may determine that they are otherwise suitable to be issued a license, and granting the license would not compromise public safety. The County Executive Officer shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant or owner, and shall evaluate the suitability of the applicant, owner, person having at least a twenty percent (20%) financial interest, manager, supervisor or employee to be issued a license based on the evidence found through the review.

(b) Energy Conservation Plan. The applicant for a cannabis business license proposing to engage in commercial cannabis cultivation or commercial cannabis nursery cultivation shall prepare and submit to the County Executive Officer an energy conservation plan with their application. The energy conservation plan shall include an analysis of energy use anticipated with the proposed operations if using conventional energy sources. The plan shall also include a description of any existing energy conservation infrastructure in use on site, such as cogeneration or solar, and energy savings with the application of energy conservation technologies. The energy conservation plan must demonstrate at least a twenty-five percent (25%) reduction of the anticipated conventional energy use with existing or proposed energy conservation infrastructure. On-site renewable or energy conservation infrastructure maybe calculated for the twenty-five percent (25%) reduction. Should the applicant not be able to demonstrate the twenty-five percent (25%) reduction with existing infrastructure, the applicant can enroll in a green power program with the local utility. If the applicant is proposing new energy conservation infrastructure the applicant must be enrolled in a green power program with the local utility until the infrastructure is in place to achieve the twenty-five percent (25%) reduction is installed and operational.

(c) Site Security Plan.

(1) All applicants shall prepare and submit a site security plan to the County Executive Office.

(2) The plan shall include at a minimum perimeter security system, lighting, twenty-four-hour video monitoring with ninety (90) day archiving of video that cover all areas of the licensed operation, employee training program on company policies and cannabis laws, color coded identification cards based on access policies for employees that do not wear identification cards while on the premises, prevention of product diversion, theft, and loss, as may be required to protect the public safety.

(3) All security plans must be implemented and approved before a cannabis business license will be issued.

(d) Odor Control Plan. All applicants shall prepare and submit an odor prevention to use the best available odor control technology, prevention devices and techniques for cannabis cultivation.

(e) Applicants for a commercial cannabis cultivation or commercial cannabis nursery cultivation license shall comply with the Statewide Cannabis Cultivation General Order, Order No. WQ 2019-0001-DWQ, has been adopted by the State Water Resources Control Board, as amended.

(f) California Cannabis Track-and-Trace System. Applicants must use the California Cannabis Track-and-Trace system to record, track, and maintain information about their cannabis and cannabis-product inventories and activities, in accordance with the regulations of their respective State licensing authority.

(g) Application Fee. All applicants shall pay an application fee pursuant to Section 2712.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) Once an applicant submits an application to the County Executive Office, the County Executive Office shall have sixty (60) days to determine if the application includes all the information required in Sections 2705 and 2706 and that the application fee has been paid and issue the cannabis business licenses.

(b) Applications shall be processed, reviewed and approved in the order received.

(c) The County Executive Office shall issue a cannabis business license to the applicant if:

(1) The applicant's application contains all of the information required in Sections 2705 and 2706 and if the application fee has been paid.

(2) There is no cause for denial, in accordance with Sections 2708 or 2711.

(d) If the County Executive Office, at any time during the review, determines that the application does not include all information required in Sections 2705 and 2706 it shall promptly notify the applicant of the deficient application elements and establish a timeframe for the applicant to provide the County Executive Office with the missing documents or information.

(1) No further action will be taken by the County Executive Office until the application complies with this Chapter, including verification of compliance for State licensing authorities.

(2) If the applicant fails to provide the requested information in the established timeframe, the application will be deemed abandoned. No fees will be refunded for abandoned applications.

(e) If the County Executive Office, at any time during the review, determines that any reason for denial can be resolved by the applicant, it shall promptly notify the applicant and establish a timeframe for the applicant to provide the County Executive Office with the missing documents or information.

(f) The County Executive Office shall provide reports to the board on the status of the cannabis business licensing program at least annually.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

Any application for a cannabis business license may be denied based on any of the following criteria:

(a) The applicant has knowingly, willfully or negligently made a false statement of material fact or omitted a material fact from:

(1) The application for a cannabis business license; or

(2) Any prior affidavit to the County concerning cannabis;

(3) The criminal background check required by Section 2706.

(b) The applicant's plan submitted pursuant to Section 2706 or other information in the application are determined to be insufficient to maintain the health, safety and general welfare of employees or the public or fail to comply State law or the County Code.

(c) If applicable, the applicant failed to obtain and/or maintain a valid seller's permit required pursuant to the Revenue and Taxation Code, as may be amended.

(d) The proposed commercial cannabis operation does not comply with the provisions of this Chapter or State law.

(e) The applicant has not received all the necessary land use entitlements.

(f) The applicant has been denied a license to engage in commercial cannabis activity by a State licensing authority.

(g) The applicant has denied the County access to the premises to conduct an inspection.

(h) Failure to pay all County taxes due pursuant to Article 2 of this Chapter.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) The County Executive Office shall specify in writing the reason for the denial of the application based on Section 2708 and notify the applicant that the decision shall become final unless the applicant corrects any deficiencies in the application in the timeframe established by the County Executive Office or appeals, pursuant to this Chapter.

(b) The Board shall established a hearing process for appeals of denials of a cannabis business license and suspensions or revocations of a cannabis business license pursuant to Section 2717.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) Each cannabis business license shall expire one (1) year after the date of its issuance. The County Executive Office may renew a cannabis business license if:

(1) The County Executive Office receives a timely renewal application by the licensee with a renewal application fee;

(2) The licensee has complied with the requirements of this Chapter and the licensee's County license, State license(s) and/or County land use entitlement(s)have not been suspended or revoked;

(3) The licensee has allowed any County staff necessary to determine compliance with this Chapter, to conduct site inspections of the cannabis operation to verify licensee's compliance with this Chapter; and

(4) The County Executive Office confirms that the commercial cannabis operation meets the standards for issuance of a license pursuant to this Chapter and approves the license issuance.

(b) Any application for renewal shall be filed with the County Executive Office at least sixty (60) calendar days before expiration of the cannabis business license, but no earlier than ninety (90) calendar days before expiration. The renewal application shall include:

(1) The legal name of the licensed entity;

(2) The date of the County business license expiration;

(3) The licensee's mailing address and premises address;

(4) Authorization for an onsite inspection of the premises during standard business hours to confirm compliance with this Chapter;

(5) Log of odor complaints and responses to complaints;

(6) If any of the documentation and information supplied by the applicant pursuant to the applicant's most recent application has changed, the applicant shall submit updated information and documentation with the application for renewal and shall provide such other information as the County Executive Office may require; and

(c) In accordance with the procedures listed in Section 2707, the County Executive Office will review the renewal license application. The County Executive Office shall issues a license renewal or provide notice of a denial of the renewal application.

(d) If a complete renewal application is submitted in compliance with subsection (b) above and the licensee is operating in good standing in accordance with the terms of this Chapter, the licensee may continue to operate until the County Executive Office provides a license renewal or a notice of denial of the renewal application.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) An application for renewal of a cannabis business license shall be denied if:

(1) The application is filed fewer than sixty (60) calendar days before the cannabis business license expiration;

(2) The licensee fails to conform to and comply with the criteria set forth in this Chapter, including possession of all required and valid State licenses;

(3) The licensee is delinquent in payment of County taxes pursuant to Article 2 of this Chapter on commercial cannabis activity;

(4) The cannabis business license is suspended or revoked at the time of the application or at any time before issuing the renewal license;

(5) The land use entitlement for the commercial cannabis operation is suspended or revoked at the time of the application or at any time before issuing the renewal license; or

(6) Any of the grounds for denial listed in Section 2708 are present.

(b) If a renewal application is denied, an applicant may file a new application pursuant to Section 2704 or appeal the denial pursuant to subdivision (b) of Section 2709. However, the licensee must cease operations when the licensee's license expires until a new license is issued.

(c) If the County Executive Office denies the renewal, the County Executive Office shall issue a notice of denial and the reason(s) for denial to the applicant. The decision shall become final unless the licensee corrects the deficiencies in the application within the timeframe established by the County Executive Office or appeals pursuant to subdivision (b) of Section 2709 within five (5) calendar days of the date of service of the notice of denial.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) The filing of an application for a cannabis business license or renewal of a cannabis business license shall be accompanied by payment of such fees as the Board of Supervisors may establish to recover the cost related to the issuance of the license.

(b) The fee may only include the reasonable costs directly related to the issuance of the license and shall not include any costs for general governmental services where the services is available to the public at large in substantially the same manner as the applicant of the license.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) A cannabis business license is issued to and covers only the licensee(s) identified on the cannabis business license and only the premises identified on the cannabis business license.

(b) A cannabis business license is not transferable and automatically terminates upon transfer or change of ownership pursuant to Section 2714. A cannabis business license does not run with the land.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) Any new business owners, managers, supervisors, employees, or other persons intending to be engaged in the business or operation of the commercial cannabis operation must submit their fingerprints and/or other necessary information for a criminal background check pursuant to subdivision (a) of Section 2706, prior to the proposed change. Documentation for the criminal background check must be submitted to the County Executive Office.

(b) Whenever any individual, corporation, limited liability company, partnership or other type of business entity licensed under this Chapter sells or transfers any part greater than ten percent (10%) of its corporate stock, partnership interest or other business interest in a commercial cannabis operation, a new cannabis business license shall be obtained pursuant to Section 2704 of this Chapter.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) A licensee 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 or other plans on file with the application, unless and until the licensee obtains written approval by the County Executive Office.

(b) A material or substantial physical alteration includes, but is not limited to, a substantial increase or decrease in the total area of the licensed premises, any other physical modification resulting in substantial change in the mode or character of business operations.

(c) Change in premises due to a declared natural disaster does not constitute a surrender or abandonment of a license. Moving cannabis, non-manufactured or manufactured cannabis products stored on a premises to another location immediately to prevent loss, theft or degradation of the cannabis or non-manufactured or manufactured cannabis products is allowed without prior approval, if:

(1) Cannabis, non-manufactured or manufactured cannabis products are moved to a secure location where only the licensee, employees or contractors have access;

(2) Notice is given in writing to the County Executive Office of the change in location within twenty-four (24) hours, including a request for relief from the premises specific licensing requirements;

(3) Access to the new disaster-related premises is provided to the County; and

(4) New premises is required for a period greater than ten (10) days, the licensee submits a written request for relief from premises-specific requirements for a defined period of time and the reasons why such relief is required.

(d) To obtain County Executive Office approval of a change in premises the licensee shall submit a new premises diagram, security plan and a written determination from the planning and development department that the amended premises area is covered by the licensee's applicable land use entitlement and continues to meet all requirements in this Chapter.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) Throughout the term of the cannabis business license, each and every licensee shall comply with this Chapter, the County Code, and State law, including, but not limited to, all of the following:

(1) Premises Restrictions.

(A) No cannabis shall be smoked, ingested or otherwise consumed on the premises.

(B) No cannabis or cannabis products, or graphics depicting cannabis or cannabis products, shall be visible from the exterior of the premises.

(C) No licensee may hold a license for the premises from the State Department of Alcoholic Beverage Control to sell alcoholic beverages, nor may the cannabis operation include a business that sells alcoholic beverages.

(D) No alcohol may be stored, sold, dispensed or consumed on the premises.

(E) A licensee shall not sell, store or allow consumption of any tobacco or nicotine products on or at any premises licensed under this Chapter.

(F) No person or employee shall be under the influence of a controlled substance.

(2) Display License and ID Cards.

(A) Each licensee shall conspicuously display its license on the premises. Each commercial cannabis operation that engages in delivery or distribution shall carry a copy of the license in all vehicles that deliver or transport cannabis or cannabis products.

(B) Employee identification cards shall be worn at all times while on the premises and cards shall be color coded to identify levels of access to portions of the operations.

(3) Odor Control. The licensee shall continuously operate of all required prevention devices and techniques for cannabis cultivation.

(4) Records. Each licensee shall keep accurate records of the licensee's commercial cannabis activities in a manner readily accessible for examination by the County for six (6) months onsite and a total of seven (7) years pursuant to Business and Professions Code sections 26160 through 26162.5, as may be amended.

(5) Security Requirements.

(A) Each licensee shall be responsible and liable for safety and security in and around the commercial cannabis operation, and shall provide adequate security on the premises including the cleanup of graffiti, trash around the premises within forty-eight (48) hours.

(B) Each licensee shall maintain such surveillance video recordings for a period of at least forty-five (45) days and shall make such video recordings available to the County upon demand.

(C) Following harvest, 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, testing samples or immediate sale.

(D) Each licensee shall notify the sheriff within twenty-four (24) hours 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.

(6) Twenty-Four-Hour Contact. Each licensee shall provide the County Executive Office with the name, telephone number and e-mail address of the licensee's designated community relations contact who the public may contact twenty-four (24) hours a day regarding problems or concerns associated with the commercial cannabis operation. The licensee shall update the County if any changes occur to the community relations contact. The licensee shall make a good faith effort to resolve problems without the need for intervention by the County.

(7) Taxes. A licensee shall pay all applicable State taxes and the County tax pursuant to Article 2 of this Chapter.

(8) Insurance. A licensee shall have and maintain for the duration of the license a general liability insurance policy naming the County as an additional insured with minimum coverage requirements of one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000.00) per aggregate.

(9) Valid Permits and State Licenses. A licensee must legally hold all required State licenses under the Medicinal and Adult-Use of Cannabis Regulatory and Safety Act (Business and Professions Code §§ 26000, et seq.), as may be amended, and under all other applicable State laws.

(b) In the interest of public safety, County officials may enter the licensee's premises during standard operating hours for the purpose of observing compliance of the commercial cannabis operation with this Chapter.

(c) County officials, including the County Executive Officer or Treasurer-Tax Collector, may inspect the commercial cannabis operation's records, books, accounts, financial data, and any and all data relevant to its licensed activities for the purpose of conducting an audit or examination.

(d) It is a misdemeanor for any person having any responsibility over a commercial cannabis operation to 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. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) Any of the following shall be grounds for suspension or revocation of a cannabis business license, based on substantial evidence:

(1) Failure to comply with one (1) or more of the terms and conditions of the cannabis business license;

(2) The cannabis business license was granted on the basis of false material information, written or oral, given unknowingly, willfully or negligently by the applicant;

(3) Any act or omission by a licensee in contravention of the provisions of this Chapter;

(4) Any act or omission by a licensee in contravention of State law or the Ventura County Code;

(5) Any act or omission by a licensee that results in the suspension or revocation of the applicable land use entitlement for the commercial cannabis activities;

(6) Any act or omission by a licensee that results in the denial, revocation or suspension of that licensee's State license;

(7) Failure to pay, or engaging in falsely reporting of, State or County taxes on commercial cannabis activity;

(8) Engaging in conduct that constitutes a nuisance, where the licensee has failed to abate the nuisance.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

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

(a) Failure to possess, or operating without, a valid cannabis business licenses for each and every cannabis operation as required by Section 2704 is a misdemeanor.

(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 pursuant to Ventura 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 Ventura County Code or otherwise authorized by law. Additionally, as a public nuisance, any violation of this Chapter shall be subject to injunctive relief, costs of abatement, costs of restoration, costs of investigation, attorney fees, restitution, and any other relief or remedy available at law or in equity.

(e) The County or the Office of the District Attorney may also pursue any and all remedies and actions available and applicable under State and local laws for any violations committed by the licensee, operator or persons related thereto, or associated with, the commercial cannabis activity.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) The County Executive Officer is the designated contact for all communications with the State licensing authorities regarding cannabis operations.

(b) The County Executive Officer shall provide written notification to the state, pursuant to Business and Professions Code section 26055(g)(2)(E), as to the status of legal nonconforming operators that are no longer eligible for local authorization of temporary or provisional annual State cannabis license.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

(a) The County shall beginning accepting and reviewing commercial cannabis business license applications on January 1, 2021.

(b) The County executive officer shall develop and publish a checklist for applicants for commercial cannabis business license applications. The Planning Director shall develop and publish a checklist for zoning clearance applications for commercial cannabis activities.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)

The County Executive Office shall submit an annual report to the Board of Supervisors regarding the County's commercial cannabis regulations. This reports may include discussions on the number of applications for cannabis business licenses, the number of violations and revocations of licenses and compliance with the tax on cannabis operations levied by Article 2 of this Chapter.

(Ord. No. 4592 (Voter Initiative Measure "O"), § 3, 11-3-2020)