AGRICULTURAL COMMISSIONER - K. OVERSTREET

Adopt resolution to adopt the cannabis business permit application procedures and to acknowledge the initial application period designated by the County Agricultural Commissioner.

SBC FILE NUMBER: 1.1

RESOLUTION NO: 2019-27

On December 11, 2018 the Board of Supervisors of County of San Benito has adopted Ordinance Nos. 974 (regulating cannabis businesses by amending Chapter 7.02), 975 (cannabis land use regulations by adopting Chapter 19.43), and 976 which amended Sections §§25.07.005, 25.17.023, 25.17.044, and 25.17.063 of Title 25 of the San Benito County Code to require a conditional use permit for certain commercial cannabis activities in certain zones.

Ordinance Chapter 7.02 of Title 7 of the San Benito County Code

All commercial cannabis activity requires prospective cannabis businesses to obtain a County-issued Cannabis Business Permit, State License, and a Conditional Use Permit.

Any person who intends to engage in commercial cannabis activity in the unincorporated area of the County is required to obtain a County-issued Cannabis Business Permit in conjunction with applicable State cannabis License. It is unlawful for any person to conduct, engage in, or allows be conducting or engaging in a commercial cannabis activity in the unincorporated area of the County, unless the County has issued such person a Cannabis Business Permit under this Chapter 7.02 of the County Code and the Cannabis Business Permit is valid. 

The regulatory ordinance (Chapter 7.02) categorizes commercial cannabis activities into six permit types  and requires each person or entity to obtain a separate Cannabis Business Permit for each fixed location in which the commercial cannabis activity is to occur and for each type of commercial cannabis activity noted below prior to commencing operations. The six Cannabis Business Permit types are as follows: Cultivation (including Nursery), Manufacturing (Volatile and Non-Volatile), Testing, Distribution, Microbusiness (Non-Retail), and Retail (Out-of-County delivery only).

Cannabis Business Permit application availability may vary depending on whether the commercial cannabis activity is prohibited or limited, e.g., cultivation is limited to fifty (50). All Cannabis Business Permits shall be valid for twelve months from the date of issuance by the CAO, unless suspended or revoked by the County.

All commercial cannabis activity requires prospective cannabis businesses to obtain a County-issued Cannabis Business Permit, State License, and a Conditional Use Permit. Pursuant to San Benito County Code §7.02.051, subdivision (A), the procedures which govern the Cannabis Business Permit application process and the manner in which the decision whether to issue any permit under Chapter 7.02 may be established by resolution of the County Board of Supervisors.

The Agricultural Commissioner, as the County Administrative Officer’s designee, has proposed Cannabis Business Permit application procedures for the Board’s adoption. An overview of those procedures is provided below.

Application Procedures

The application process to operate a Cannabis Business (“CB”) in San Benito County will open on April 1, 2019, and is adopted pursuant to San Benito County Ordinance Chapter 7.02.

All applicants are required to pay a deposit of $10,650 upon the initial application submission. Payment must be made by certified check, cashier’s check, or money order made payable to “San Benito County.” The County will not accept cash. Applicants must submit two (2) copies of the complete application, each in a three-ring binder; one (1) copy of the complete application in PDF format on a flash drive. The application is due to the County by 4:00 PM on May 31, 2019.

Here are the steps to submit an application and begin the permitting process:

1. Applicant to pay deposit of $10,650 for initial cannabis business permit at the County Agriculture Commissioners Office.
2. Make an appointment with the Sheriff’s Department for the Live Scan Criminal History Check.
3. Make an appointment with RMA planning division to review the applicant’s site plan and generate a zoning verification letter. Planning and Building Services will provide the applicant with an Initial Application Review Checklist and Zoning Clearance to take to the Agriculture Commissioner’s office.
4. Proof of deposit, background check, and zoning clearance must be submitted with complete application package to the Agriculture Commissioner’s office.

All applications process will be split into four phases

Phase 1: Application Submittal and Determination of Eligibility

• Indemnification Agreement (Ag Commissioner)
• Live Scan Criminal History Check (Sheriff’s department)
• Zoning Verification Letter (RMA)
• Application (online or Ag Commissioner)
• Applications and Background Check Form(s)
• A complete application will consist of the following:

• Complete, signed copy of the San Benito County Cannabis Business Permit Application Form;
• Complete, signed San Benito County Cannabis Permit Employee/Owner Background Application for each of the Owners.  If the Owner is an international applicant, please provide an ITIN or U.S.-issued Social Security Number or Driver’s License;
• Background Check Disclosure & Authorization Form;
• Zoning Verification Letter;
• All supplemental information to be evaluated in Phases 2 and 3.
•  

Phase 2: Application Evaluation and Initial Ranking:

• Location (300 Points)
• Business Plan (400 Points) 
• Neighborhood Compatibility Plan (400 Points)
• Safety Plan (200 Points)
• Security Plan (200 Points)

Those applicants that score 80% or higher in this phase will move on to Phase 3.

Phase 3: Interviews and Second Ranking (2,500 Points)

Ag Commissioner’s office will notify recipient’s and set Interviews with the selection Committees.  

Phase 4: County Administrative Officer Recommendation and Final Approval

Selection Committee’s recommendation will be presented at a Public Meeting, where the community will be allowed to present concerns and/or support and provide additional considerations for potential permit conditions that may be implemented by staff.  

COUNTY’S RESERVATION OF RIGHTS

The County reserves the right to reject any and/or all applications, with or without cause or reason. The County may also modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any party, firm, or organization. In addition, the County reserves the right to request and obtain additional information from any candidate submitting an application. Late or incomplete applications MAY BE REJECTED.  Furthermore, an application RISKS BEING REJECTED for the following reasons: 

1. It is considered not fully responsive to this request for a permit application.
2. It contains excess or extraneous material not called for in the request for permit application. 

In addition, the Agricultural Commissioner has designated the initial application period to begin April 1, 2019, and to close at 4:00 p.m. on May 31, 2019. (San Benito County Code §7.02.051, subdivision (C)(1).)

This information is available on the County’s website: http://cosb.us/county-departments/cannabis-regulatory-program/#.XImUxk1YaUk

Adopt resolution to adopt the cannabis business permit application procedures and to acknowledge the initial application period designated by the County Agricultural Commissioner.