Chapter 7.130
CANNABIS DISPENSARY LICENSES
Sections:
7.130.050 Prohibited activities.
7.130.070 Creation of the Cannabis Retail Licensing Program.
7.130.090 License application.
7.130.150 Appeals and administrative hearings.
7.130.010 Purpose.
The purpose of this chapter is to provide local rules to regulate cannabis retailers in the unincorporated area of Santa Cruz County.
It is also the purpose of this chapter to mitigate the negative impacts and secondary effects associated with ongoing cannabis activities including, but not limited to, demands placed on law enforcement and administrative resources; neighborhood disruption; the exposure of children to cannabis; drug sales to minors and adults; fraud in issuing, obtaining, or using cannabis recommendations; robberies; burglaries; assaults; drug trafficking and other violent crimes.
This chapter is not intended to conflict with Federal or State law. It is the intention of the County that this chapter be interpreted to be compatible with Federal and State enactments and in furtherance of the public purposes that those enactments encompass. [Ord. 5416 § 1, 2022; Ord. 5257 § 1, 2017; Ord. 5227 § 1, 2016].
7.130.030 Definitions.
As used in this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:
(A) “Applicant” means the person or entity submitting an application for a license under this chapter.
(B) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, as defined under Business and Professions Code Section 26001(e), as may be amended.
(C) “Cannabis plant” means any mature or immature cannabis plant, or any cannabis seedling, unless otherwise specifically provided herein.
(D) “Cannabis products” means plant material that has been transformed, through a manufacture process whether by mechanical means and/or using solvents, into concentrated cannabis, or cannabis tinctures, edibles, drinks, topical salves, lotions or other materials containing cannabis or concentrated cannabis and other ingredients.
(E) “CRL program” means the cannabis retail licensing program created by this chapter.
(F) “Cultivation” or “cultivate” means the planting, growing, developing, propagating, harvesting, drying, processing, or storage of one or more cannabis plants or any part thereof in any location, indoor or outdoor, including within a fully enclosed and secure building.
(G) “License” means the written evidence of permission given by the Licensing Official for a licensee to operate a retail business. “License” does not mean “permit” within the meaning of the Permit Streamlining Act, and a license does not constitute a permit that runs with the land on which a retail business sits.
(H) “Licensee” means the person or entity holding a valid license to operate a retail business under this chapter.
(I) “Licensing Official” means the official appointed by the County Administrative Officer who is responsible for implementing the provisions of this chapter.
(J) “Manager” means any person to whom a retail business has delegated discretionary powers to organize, direct, carry on or control its operations. Authority to control one or more of the following functions shall be prima facie evidence that such a person is a manager of the business: (1) to disburse funds of the business other than for the receipt of regularly replaced items of stock; or (2) to make, or participate in making, policy decisions relative to operations of the business.
(K) “Owner” or “owners” means any of the following: all persons or entities holding a financial interest in a retail business. For purposes of this definition, the term “financial interest” does not include a security interest, lien, or encumbrance on property.
(1) A person with an aggregate ownership interest of 10 percent or more in the applicant applying for a license or a licensee, 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 license.
(L) “Parcel” means that unit of land assigned a unique assessor’s parcel number by the County Assessor, whether vacant or occupied by a building, group of buildings, or accessory buildings, and includes the buildings, structures, yards, open spaces, lot width, and lot area.
(M) “Park” means any playground, hiking or riding trail, recreational area, beach, community center or building, historic structure or facility, owned, managed or controlled by any public entity.
(N) “Retail business” or “retailer,” for the purposes of this chapter, means a fixed brick-and-mortar storefront located within the unincorporated area of Santa Cruz County that sells cannabis and cannabis products to retail consumers. “Retail business” or “retailer” does not include the following:
(1) Any location during only that time reasonably required for a primary caregiver to distribute, deliver, dispense, or give away cannabis to a qualified patient or person with an identification card who has designated the individual as a primary caregiver, for the personal medical use of the qualified patient or person with an identification card, in accordance with California Health and Safety Code Sections 11362.5 and 11362.7 et seq.;
(2) The location of any clinic licensed pursuant to Chapter 1 (commencing with Section 1200), a health care facility licensed pursuant to Chapter 2 (commencing with Section 1250), a residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 (commencing with Section 1568.01), a residential care facility for the elderly licensed pursuant to Chapter 3.2 (commencing with Section 1569), a hospice, or a home health agency licensed pursuant to Chapter 8 (commencing with Section 1725), all of Division 2 of the California Health and Safety Code where: (a) a qualified patient or person with an identification card receives medical care or supportive services, or both, from the clinic, facility, hospice, or home health agency, and (b) the owner or operator, or one of not more than three employees designated by the owner or operator, of the clinic, facility, hospice, or home health agency has been designated as a primary caregiver pursuant to California Health and Safety Code Section 11362.7(d) by that qualified patient or person with an identification card; or
(3) A cultivation site granted an exemption by the Planning Director pursuant to SCCC 13.10.670(G) as enacted by Ordinance No. 5090 (now repealed), so long as the area subject to cultivation is not expanded or enlarged beyond what existed at that location on January 1, 2012.
(O) “School” means any licensed preschool or any public or private school providing instruction in kindergarten or grades one to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes.
(P) “Vehicle” means a device by which any person or property may be propelled, moved, or drawn upon a street, sidewalk or waterway, including but not limited to a device moved exclusively by human power.
(Q) The following words or phrases when used in this section shall be construed as defined in California Health and Safety Code Section 11362.7: “identification card”; “person with an identification card”; “primary caregiver”; and “qualified patient.” [Ord. 5416 § 1, 2022; Ord. 5293 § 1, 2019; Ord. 5257 § 1, 2017; Ord. 5227 § 1, 2016].
7.130.050 Prohibited activities.
(A) It is unlawful and shall constitute a public nuisance for anyone to own, establish, operate, use, or permit the establishment or operation of a retail business without (1) a valid local license required by this chapter; and (2) a valid State license required under California law.
(B) The prohibition in subsection (A) of this section includes renting, leasing, or otherwise permitting a retailer to occupy or use a location.
(C) It is unlawful and shall constitute a public nuisance for anyone other than a locally licensed retailer to engage in retail sales of cannabis. Restrictions relating to mobile deliveries of cannabis are detailed in SCCC 7.130.110(F). [Ord. 5416 § 1, 2022; Ord. 5293 § 1, 2019; Ord. 5277 § 1, 2018; Ord. 5257 § 1, 2017; Ord. 5227 § 1, 2016].
7.130.070 Creation of the Cannabis Retail Licensing Program.
(A) There is hereby created the Cannabis Retail Licensing Program. The CRL program shall be operated by the Licensing Official. The Licensing Official shall be appointed by the County Administrative Officer and shall report directly to the County Administrative Officer.
(B) The Licensing Official shall take the necessary steps to build and manage the CRL program. This includes, but is not limited to, accomplishing the following tasks in compliance with the rules set forth in this chapter:
(1) Creating application forms for licensees;
(2) Conducting pre-licensure inspections;
(3) Approving and denying license applications;
(4) Issuing and revoking licenses;
(5) Creating a system on the County’s website to communicate the number of licenses issued and notifying the public as to whether applications for licenses are being accepted;
(6) Establishing and/or recommending the adoption of any policies, procedures, rules, regulations, or fees necessary to implement the CRL program; and
(7) Working with other officials in the County to ensure that licensees comply with all aspects of the County Code. [Ord. 5416 § 1, 2022; Ord. 5293 § 1, 2019; Ord. 5257 § 1, 2017; Ord. 5227 § 1, 2016].
7.130.090 License application.
Acceptance of applications for an original retail business license shall open on September 1, 2016, and close on November 30, 2016. After November 30, 2016, no additional applications for an original retail business license may be accepted.
Exception: This restriction shall not apply to the Santa Cruz Veterans Alliance. The Santa Cruz Veterans Alliance shall be permitted to submit an application until June 1, 2017. [Ord. 5416 § 1, 2022; Ord. 5293 § 1, 2019; Ord. 5257 § 1, 2017; Ord. 5243 §§ 1, 2, 2017; Ord. 5227 § 1, 2016].
7.130.110 License required.
(A) Original License.
(1) Submission of the Application. An application for an original license under this chapter shall be made on the forms designated for that purpose promulgated by the Licensing Official, and shall include all required information, attachments, and signatures required by the Licensing Official. The forms shall be submitted under penalty of perjury, and shall include, but not be limited to, the following information:
(a) The names of the applicant(s) and owner(s);
(b) The exact location by street address and assessor parcel number of the existing retail business;
(c) A copy of the applicant’s State-issued license to engage in retail sales of cannabis;
(d) The applicants’ and owners’ waiver and release of the County from any and all liability for monetary damages related to or arising from the application for a license, the issuance of the license, the denial of the license, or the enforcement of the conditions of the license;
(e) Background information to be determined by the Licensing Official, including but not limited to a statement that the applicant(s) and owner(s) have submitted to a LiveScan background check;
(f) Tax identification information;
(g) Security plans for the retailer and any security procedures form that the applicant submitted to the Department of Cannabis Control;
(h) The cannabis delivery procedures form that the applicant submitted to the Department of Cannabis Control;
(i) Vehicle registration and proof of insurance for all delivery vehicles;
(j) Proof of compliance with workers’ compensation insurance requirements; and
(k) Such other information as the Licensing Official deems reasonably necessary to a thorough review of the application.
(2) Payment of the Application Fee. An application for a license shall not be accepted unless it is accompanied by the payment of a nonrefundable application fee set by the Licensing Official and approved by the Board of Supervisors. The purpose of any and all fees assessed under this chapter is to pay for the costs of the CRL program.
(3) Review of the Application.
(a) Upon receipt of an application for an original license, the Licensing Official will create a licensing file related to the application and will conduct an actual inspection of the retailer to determine whether it meets the requirements of the CRL program. The Licensing Official shall be the custodian of the licensing file. The licensing file is subject to the California Public Records Act.
(b) Meeting the requirements of the CRL program does not automatically entitle an applicant to receive a license.
(4) Grant or Denial of the License. After concluding the required pre-license investigation, the Licensing Official shall notify the applicant in writing whether a license has been granted or denied.
(5) Payment of the License Fee. An original license shall not be granted to an applicant under this chapter until the applicant has paid a nonrefundable original license fee as set by the Licensing Official and approved by the Board of Supervisors.
(6) Length of Time the Original License Is Valid. An original retail license shall be valid from the date it is issued until December 31, 2017. If a licensee wishes to continue operating a dispensary after December 31, 2017, they must obtain a renewal license, as set forth in subsection (B) of this section.
(B) Renewal License.
(1) Requirement to Obtain a Renewal License. In order to continue operating a retail business after expiration of the original license, a licensee must obtain a renewal license before the original license expires. A renewal license must be obtained annually via application forms designated for that purpose. It is incumbent on the holder of a license to ensure that the license is renewed before expiration, in order to continue selling cannabis after December 31st of the year the renewal license expires.
(2) Submission of the Renewal License Application.
(a) An application for a renewal license shall be made on the forms designated for that purpose promulgated by the Licensing Official, and shall include all required information, attachments, and signatures required by the Licensing Official. The forms shall be submitted under penalty of perjury, and shall include, but not be limited to, the following information:
(i) The information required for the submission of an original license under subsection (A) of this section;
(ii) Identification of any changes to the information the applicant submitted on the original license application;
(iii) Any law enforcement or license enforcement activity related to the licensee’s operations during the past calendar year;
(iv) A representation that the applicant continues to hold in good standing any license required by the State of California to sell cannabis;
(v) Such other information as the Licensing Official deems reasonably necessary to a thorough review of the application.
(b) Renewal license applications will be accepted starting in the year 2017. In 2017, applications for a renewal license shall be accepted during the time frame determined by the Licensing Official. For all future years, applications for a renewal license shall only be accepted from September 1st through October 15th of any calendar year, in order to allow the Licensing Official to timely investigate the renewal license applications submitted for that calendar year. The Licensing Official is not authorized to accept an untimely renewal license application.
(3) Payment of the Renewal License Application Fee. An application for a renewal license shall be accompanied by the payment of a nonrefundable renewal license application fee set by the Licensing Official and approved by the Board of Supervisors.
(4) Review of the Renewal License Application. Upon receipt of an application for a renewal license, the Licensing Official shall update the licensee’s licensing file and perform whatever investigation the Licensing Official deems necessary to determine whether to grant or deny the renewal license. The investigation may include a physical inspection of the retailer and any delivery vehicles, at the discretion of the Licensing Official, to determine whether the licensee remains in compliance with the regulations of the CRL program.
(5) Grant or Denial of the Renewal License. On or before December 31st of the year in which the renewal application is submitted, and after concluding the required renewal license investigation, the Licensing Official shall notify the applicant in writing of whether the renewal license has been granted or denied. If an application for a renewal license is denied, any further non-licensed retail business operations may only be carried out in accordance with the limitations set forth in subsection (H)(3) of this section.
(6) Payment of the Renewal License Fee. A renewal license shall not be granted to the applicant under this chapter until the applicant has paid a nonrefundable renewal license fee as set by the Licensing Official and approved by the Board of Supervisors.
(7) Length of Time the Renewal License Is Valid. The renewal license shall be valid for one calendar year, beginning January 1st of the year following issuance, and expiring on December 31st of that year. If a licensee wishes to continue operating a retail business after December 31st of that year, it must obtain a new renewal license per the terms of this section.
(C) Amending a License.
(1) Licensees may submit an application to amend an existing license at any time, on a form promulgated by the Licensing Official for that purpose. Applications to amend a license will be reviewed by the Licensing Official in a manner consistent with the review of original and renewal license applications. Amendments must be submitted prior to any changes occurring in ownership, corporate structure, business activities, or physical modifications to the premises.
(2) Applicants seeking an amended license must include with their application a monetary deposit, to be determined by the Licensing Official or their designee, based on an estimate of the hours the Licensing Official will need to review the application and perform any necessary inspections. Additional deposits or payments shall be made as determined necessary by the Licensing Official in order to recover costs associated with processing the application.
(3) Requests by a licensee to change locations to a new parcel will be addressed by the Licensing Official on a case-by-case basis, considering all the requirements of this chapter. However, licensees shall not be allowed to move to a new parcel unless the new parcel meets all the requirements of this chapter.
(D) Required Statements on Licenses. All licenses issued by the Licensing Official shall contain the following statements, displayed prominently on the license itself:
(1) A warning that operators, employees, and members of cannabis businesses may be subject to prosecution under Federal laws; and
(2) An acknowledgment that, by accepting the license and operating a retail business, the applicant and owners of the business have released the County from any and all liability for monetary damages related to or arising from the application for a license, the issuance of the license, the enforcement of the conditions of the license, or the revocation of the license; and
(3) Any other statements deemed necessary by the Licensing Official.
(E) Restrictions Relating to the Issuance of a License.
(1) No license may be issued to operate a retail business unless the retail business is located in a zone district designated as PA (Professional and Administrative Offices), C-1 (Neighborhood Commercial), C-2 (Community Commercial), C-4 (Commercial Services), or CT (Tourist Commercial) by the Santa Cruz County Zoning Ordinance.
(2) No license may be issued to operate a retail business located within 600 feet from (a) a school; (b) another cannabis retail business; or (c) an alcohol or drug treatment facility. This restriction may be waived by the Licensing Official if findings are made that the general public benefit would outweigh concerns regarding intensity of use, land use compatibility, and public health and safety. If this restriction is waived, public notice and an opportunity to appeal the waiver will be provided as delineated in subsections (E)(5), (6), and (7) of this section. The distance specified in this subsection shall be the horizontal distance measured in a straight line from the property line of the school or other retail business to the closest property line of the lot containing the retail business under review, without regard to intervening structures. The distance requirements set forth in this subsection shall not apply to those licensed health care and other facilities identified in California Health and Safety Code Section 11362.7(d)(1); or a retail business that is in violation of the distance requirement of this subsection as a result of the establishment of a conflicting use (a school or other retail business) after the date on which the State Board of Equalization issued a seller’s permit to the retail business for its location.
(3) No license may be issued to operate a retail business within 300 feet of any parcel zoned RA (Single-Family Residential and Agriculture); RR (Single-Family Residential, Rural); R-1 (Single-Family Residential, Urban/Rural); RB (Single-Family Residential, Oceanfront/Urban); or RM (Multiple-Family Residential). This restriction may be waived by the Licensing Official if findings are made that the general public benefit would outweigh concerns regarding intensity of use, land use compatibility, and public health and safety. If this restriction is waived, public notice and an opportunity to appeal the waiver will be provided as delineated in subsections (E)(5), (6), and (7) of this section. The distance specified in this section shall be the horizontal distance measured in a straight line from the property line of the residentially zoned property to the closest property line of the lot on which the retail business is to be located. This prohibition shall not apply to retailers operating in a location occupied on January 1, 2016.
(4) In the instance an applicant requests a waiver, as defined in subsections (E)(2) and (3) of this section, the Supervisor of the affected district shall be notified prior to a determination by the Licensing Official.
(5) Upon approval of a waiver by the Licensing Official, the following public notice procedures are required:
(a) The County shall mail a notice, in the form of a postcard or letter to the applicant and to all property owners within 600 feet of the exterior boundaries of the subject property, as well as to all lawful occupants of properties within 100 feet of the subject property, including the lawful occupants of the subject property; and
(b) The applicant shall post a notice on the subject property in a conspicuous place at least 14 calendar days prior to the end of the appeal period.
(6) Contents of the waiver notice shall include:
(a) Location of the proposed project;
(b) Name of the applicant and owner;
(c) Description of the proposed project and waiver requested;
(d) Process to obtain additional information;
(e) Description of appeal procedures; and
(f) Final date on which an appeal will be accepted.
(7) Appeal Procedures.
(a) Who May Appeal. Any person whose interests are adversely affected by approval of a waiver may submit a notice of appeal.
(b) Appeal Period. The period to appeal a waiver determination shall be 21 calendar days from the date public notices are mailed pursuant to subsection (E)(5)(a) of this section.
(c) Contents of a Notice of Appeal. Appeals can be made by submitting a notice of appeal, which shall be a signed writing submitted to the Cannabis Licensing Office at the address provided and by the date listed on the public notice. The notice of appeal shall identify the proposed project and proposed waiver, shall provide the identity and contact information of the appellant, and shall set forth a concise statement of the reasons appellant believes the proposed waiver is unjustified or inappropriate.
(d) Effect of Notice of Appeal. The submission of the notice of appeal shall have the effect of staying the issuance of a cannabis business license until such time as final action has been taken on the appeal.
(e) Appeal Hearing. An administrative hearing officer shall review any appeal(s) made on a waiver. The hearing officer shall consider the notice of appeal, the proposed waiver, the cannabis business license application, and any other relevant documents or written information provided by the Licensing Official, applicant, or appellant. The administrative hearing officer shall review the matter de novo and render a written decision within 30 days. The decision shall be final.
(F) Restrictions on the Mobile Delivery of Cannabis.
(1) Holders of a State retail license, which are located within the County of Santa Cruz, may deliver cannabis to consumers via mobile delivery to the consumer’s premises, subject to the provisions of this section.
(2) Licensees engaging in mobile deliveries shall keep complete and appropriate financial records enabling audit of all transactions accomplished via mobile delivery, and shall be able to distinguish between, and account for, sales between the categories of on-site sales versus mobile delivery sales for accounting purposes.
(3) Licensees that engage in mobile deliveries are prohibited from having any advertisement of their business or services on their delivery vehicles.
(G) Grounds for License Revocation. Grounds for revocation of a license include, but are not limited to, any of the following:
(1) Retailers remaining open and/or operating between the hours of 10:00 p.m. and 8:00 a.m.
(2) Allowing alcohol or cannabis to be consumed at the premises of a retail business (“premises,” for purposes of this subsection, includes any area used for parking any vehicle).
(3) Allowing a minor unaccompanied by a parent or legal guardian to enter a retail business.
(4) Allowing a person less than 21 years of age to transport, distribute, deliver, dispense, or give away cannabis on behalf of the business.
(5) Allowing cannabis to be visible from the exterior of a retail business or a cannabis delivery vehicle.
(6) Illuminating any portion of a retail business between the hours of 10:00 p.m. and 8:00 a.m. by lighting that is visible from the exterior of the premises, except such lighting as is reasonably utilized for the security of the premises.
(7) Failure by an applicant or owner of a retail business to successfully pass the background check required by the Licensing Official, including but not limited to successfully passing the LiveScan background check conducted annually before the submission of an application for an original or renewal license.
A failed LiveScan is a LiveScan report that includes any felony conviction within the past 10 years and/or reflects that the applicant or owner is currently on parole or probation related to a felony conviction. Felony convictions for cannabis-related offenses prior to January 1, 2016, will not result in a failed LiveScan, unless the offense involved sales to a minor.
(8) Providing an on-site location for physicians or medical professionals to write recommendations for medical cannabis.
(9) Failing to provide litter and graffiti removal services for a licensee’s business premises on a daily basis.
(10) Failure to provide adequate security precautions at all times, including, but not limited to, dedicated security personnel present during a retailer’s hours of operation.
(11) Violation of County signage regulations (see Chapter 13.10 SCCC), the placement or use of any roadside billboard to advertise any aspect of a cannabis business or cannabis products, or the placement or use of any sign that includes pricing of cannabis, details regarding specific cannabis products, or cannabis photography or graphics related to the cannabis plant, cannabis products, or cannabis paraphernalia.
(12) Three or more citations for violation of Chapter 8.30 SCCC (Noise) within a single year.
(13) Possession, storage, or use of any firearm at a retailer or in association with the delivery of cannabis.
(14) Violation of any of the restrictions relating to the issuance of a license or the mobile delivery of cannabis as set forth in this chapter.
(15) Violation of any Santa Cruz County Code provision related to the cultivation of cannabis, including but not limited to any provision in Chapter 7.128 SCCC.
(16) Failure to cooperate with a financial audit by the County of Santa Cruz of any and all aspects of the licensee’s business, including but not limited to on-site inspection and review of financial transactions, sales records, payroll and employee records, purchase orders, overhead expense records, shipping logs, receiving logs, waste disposal logs, bank statements, credit card processing statements, inventory records, tax records, lease agreements, supplier lists, supplier agreements, policies and procedures, and examination of all financial books and records held by the licensee in the normal course of business.
(17) Failure to timely remit the taxes required to be paid under Chapter 4.06 SCCC (Cannabis Business Tax).
(18) Violation of any Santa Cruz County Code provision or State law related to the extraction of cannabis oils, resins, or other compounds from cannabis plants.
(19) Violation of any Santa Cruz County Code provision or State law related to the cannabis business activity, including any provision of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”).
(20) Violation of any administrative rule or regulation promulgated by the Licensing Official.
(21) Failure to maintain a State-issued license authorizing the retail sale of cannabis.
(H) Denial or Revocation of License; Remedies.
(1) The Licensing Official may deny an application for an original or renewal license, or revoke an original or renewal license, for any of the following reasons:
(a) Discovery of untrue statements submitted on a license application.
(b) Revocation or suspension of any State license required to sell cannabis.
(c) Previous violation by the applicant of any provision of the Santa Cruz County Code or State law related to selling cannabis, or related to the cultivation, transportation, extraction, or manufacture of cannabis or cannabis products.
(d) Operation of a retail business in a manner contrary to any of the conditions set forth in subsection (E) (Restrictions Relating to the Issuance of a License), subsection (F) (Restrictions on the Mobile Delivery of Cannabis), or subsection (G) (Grounds for License Revocation) of this section.
(e) The applicant or owner failed their last annual LiveScan background check.
(f) The creation or maintenance of a public nuisance.
(2) The Licensing Official’s denial of a license application or revocation of a license is a final action that is not subject to any further administrative remedy. The only legal remedy available to appeal the Licensing Official’s action is to file a petition for writ of mandate in the superior court under California Code of Civil Procedure Section 1085.
(3) If an application for an original or renewal license is denied, or if a license is revoked, all operations associated with the retailer shall cease immediately, subject to the following exception:
If the applicant or operator is currently operating a retail business, and the applicant or operator files a petition with the superior court challenging the Licensing Official’s denial or revocation decision within 30 days of the date the decision is issued, the applicant or operator may continue to operate the retail business for 90 days from the date the Licensing Official’s decision was issued. Any retail business operations that occur after the 90 days has elapsed may only be conducted with a valid local license.
(4) Under no circumstances shall a cause of action for monetary damages be allowed against the County of Santa Cruz, the Licensing Official, or any County employee as a result of a denial or a revocation of a license. [Ord. 5416 § 1, 2022; Ord. 5379 § 1, 2021; Ord. 5299 § 1, 2019; Ord. 5293 § 1, 2019; Ord. 5277 § 2, 2018; Ord. 5257 § 1, 2017; Ord. 5227 § 1, 2016].
7.130.130 Enforcement.
(A) It shall be unlawful for any person or entity to violate any provision or fail to comply with any requirement of this chapter. No proof of knowledge, intent, or other mental state is required to establish a violation. Violations of this chapter shall be subject to administrative citation, notice of violation, abatement order, injunctive relief, costs of abatement, costs of restoration, costs of investigation, attorney fees, restitution, or any other relief, remedy, or enforcement measure authorized by the Santa Cruz County Code or available at law or in equity.
Each and every violation of the provisions of this chapter shall constitute a separate violation and is hereby deemed unlawful, a public nuisance, and an immediate threat to public health, safety and welfare. Pursuant to Government Code Section 53069.4, fines and penalties shall be immediately imposed for violations of this chapter to protect the public health, safety, and welfare against unlawful cannabis activities and other violations herein as they pertain to zoning, health, or safety provisions of the County Code.
(B) Administrative Citations.
(1) The Licensing Official is authorized to issue administrative citations for violations of this chapter pursuant to the authority granted in Chapter 1.13 SCCC and is the “enforcing officer” responsible for implementing the administrative citation procedures set forth in this chapter. The issuance of administrative citations under this chapter shall follow the procedures set forth in SCCC 1.13.030 and administrative citations shall contain the contents of notice set forth in SCCC 1.13.040. All other provisions set forth herein pertaining to the issuance of administrative citations shall be controlling for citations issued pursuant to this chapter.
(2) Administrative Citations Issued for Unlawful Activities—Licensees. In addition to any other applicable remedies, licensees who violate any provision or fail to comply with any requirement of this chapter shall be liable for civil penalties. Upon the issuance of an administrative citation and at the discretion of the Licensing Official, the following daily fines may be immediately imposed upon each and every unlawful activity:
(a) A fine not exceeding $2,500 for a first violation.
(b) A fine not exceeding $5,000 for a second violation of the same County Code provision within one year of the first violation.
(c) A fine not exceeding $7,500 for each additional violation of the same County Code provision within one year of the first violation.
(3) Administrative Citations Issued for Unlawful Activities—Non-Licensees. In addition to any other applicable remedies, any person or entity engaging in commercial cannabis activity without a Santa Cruz County cannabis business license who violates any provision of this chapter shall be liable for civil penalties. Upon the issuance of an administrative citation and at the discretion of the Licensing Official, the following fines may be immediately imposed upon each and every unlawful activity:
(a) A fine not exceeding $100.00 per package of cannabis.
(b) A fine not exceeding $100.00 per package of cannabis product.
(C) Under this chapter, property owners may be held strictly liable for violations involving unlawful cannabis activities on their property. A violation of building, plumbing, electrical, or other similar structural, health and safety, or zoning requirements that exists as a result of, or to facilitate, the illegal retail sale of cannabis may be subject to an immediate imposition of civil penalties pursuant to this chapter. Imposition of fines may be delayed and a property owner shall be permitted 15 days from the date the County issues the property owner an administrative citation or other notice of violation if all of the following conditions are met:
(1) A tenant is in possession of the property that is the subject of the administrative action.
(2) The rental property owner or agent can provide evidence that the rental or lease agreement prohibits the retail sale of cannabis.
(3) The rental property owner or agent did not know the tenant was illegally selling cannabis and no complaint, property inspection, or other information caused the rental property owner or agent to have actual notice of the illegal cannabis sales.
(D) Payment of Fines.
(1) Any administrative fine imposed under this chapter shall be paid to the County within 30 days from the date the County issues an administrative citation or any other enforcement measure, unless a timely appeal is filed pursuant to SCCC 7.128.230. Any person who does not file a timely appeal and fails to pay the full amount of the fine on or before 30 days shall be liable for the payment of any applicable late payment charge as may be adopted by resolution of the Board of Supervisors.
(2) To apply for a hardship waiver to reduce the amount of the fine, a person must follow the procedures in SCCC 7.130.150(B).
(3) The failure of any person to pay a fine assessed by an administrative citation or any other enforcement measure under this chapter, a late payment charge, or collections costs related to an enforcement measure by the due date shall constitute a debt to the County. The County may seek payment of the debt by use of all available legal means, including, but not limited to, the following:
(a) The County may refer the debt to the Auditor-Controller for collection.
(b) The County may file a civil action to recover the debt.
(c) The County may impose a lien on property pursuant to State law.
(d) Recovery through the Franchise Tax Board.
(E) In addition to issuing administrative citations, the Licensing Official is authorized to separately issue a notice of violation for violations of this chapter pursuant to the procedures in SCCC 1.12.070. Notwithstanding the limitations on civil penalties set forth in SCCC 1.12.070(A), civil penalties for violation of this chapter shall be assessed pursuant to the daily fines set forth in this enforcement section. Whenever a notice of violation is issued by the Licensing Official for violation of a provision of this chapter, the violator shall not be provided with additional time to correct the violation before the imposition of civil penalties are assessed. All other provisions set forth herein pertaining to administrative hearings and administrative hearing officers shall be controlling for notice of violations issued pursuant to this chapter.
(F) Where feasible and consistent with the press of business and available resources, the Licensing Official shall use the summary abatement procedures set forth in SCCC 1.14.030 to abate nuisances related to the unlicensed cultivation, manufacture, or distribution of cannabis. If the person responsible for the unlicensed cannabis business activity or occupying the premises refuses to accept service of any notice related to the summary abatement procedure, or if the premises is unoccupied at the time service is attempted, notice is deemed appropriately given when it is posted in a conspicuous place on the real property containing the nuisance. Anyone filing an administrative appeal of a summary abatement order shall pay a fee as set forth in the Unified Fee Schedule. All other provisions set forth herein pertaining to administrative hearings and administrative hearing officers shall be controlling for summary abatement orders issued pursuant to this chapter.
(G) 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, property owner, operator, or persons related to, or associated with, the unlawful cannabis activity. [Ord. 5416 § 1, 2022; Ord. 5293 § 1, 2019; Ord. 5257 § 1, 2017; Ord. 5227 § 1, 2016].
7.130.150 Appeals and administrative hearings.
(A) General Requirements. A person served with an administrative citation or other enforcement measure issued pursuant to this chapter may file an appeal within 15 calendar days from the date of service.
(1) The appeal shall be made in writing and submitted to the Licensing Official or their designee.
(2) The appeal shall be accompanied by an appeal fee in an amount established by resolution of the Board of Supervisors.
(3) Upon the filing of a proper appeal, the Licensing Official shall have the discretion to cease all fines being imposed unless such cessation would contribute to the continuation of an imminent life, health, or safety risk, as determined by the Licensing Official.
(4) After receiving the written notice of appeal, the Licensing Official shall schedule an administrative hearing before a Hearing Officer.
(5) Written notice of the date, time, and place of the administrative hearing shall be served at least 15 calendar days prior to the date of the hearing by personal service or by first class mail to the responsible party or parties alleged to have violated the County Code.
(B) Hardship Waiver. A person served with an administrative citation or other enforcement measure issued pursuant to this chapter may request a financial hardship waiver by following the appeal procedures of subsections (A)(1) through (3) of this section. The request must show that the responsible party made a bona fide effort to comply after the first violation and that payment of the full amount of the fine would impose an undue financial burden on the responsible party. Upon receipt of a request for a hardship waiver, the Licensing Official has the discretion to lower the fine imposed. The Licensing Official will respond to a request for a hardship waiver by personal service or by first class mail.
(C) Hearing Officers.
(1) The County shall provide neutral Hearing Officers hired through independent contracts 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, issue enforcement orders with regard to violations of the County Code, and provide for the recovery of civil penalties, enforcement costs, and any other costs of abatement.
(2) In conducting an administrative hearing, the Hearing Officer shall consider the previously established interpretation of an ordinance provision by the department charged with its enforcement unless that interpretation is shown to be clearly erroneous or unauthorized.
(3) In determining the amount of civil penalties to be assessed against any person violating a provision of the County Code, the Hearing Officer shall take into consideration the following:
(a) The extent to which the person who violated the County Code is a responsible party.
(b) The magnitude of the violation(s).
(c) The extent to which the person derived a financial benefit from the violation(s).
(d) Any prior history of related violations by the same person on the subject property or on other parcels within the County or related violations on the same subject property.
(e) The financial ability of the person to pay.
(f) Any corrective action voluntarily undertaken by the person prior to the hearing to eliminate the violation and any other mitigating circumstances justifying a reduction of the amount of the penalties.
(g) The extent to which there was any environmental damage, nuisance, or danger to the health, safety, and welfare of the public on the subject property or surrounding properties related to the violation(s).
(4) Hearing Officers shall be licensed attorneys of the State Bar of California in good standing. A Hearing Officer shall disqualify themselves from serving as Hearing Officer in a particular matter where they have a conflict of interest within the meaning of the Political Reform Act (Government Code Section 87100 et seq.), and shall otherwise comply with the disqualification provisions of Canon 3.E. of the Code of Judicial Ethics. The notice of hearing shall also identify the Hearing Officer designated to conduct the hearing and advise the recipient(s) of their right to submit within 10 business days of the date of the notice of hearing a written objection to the designated Hearing Officer. In the event of such a disqualification, a new Hearing Officer shall be randomly selected from the panel of alternate Hearing Officers. Each party shall only have the right to disqualify one Hearing Officer for a particular matter.
(D) Administrative Hearing Procedures.
(1) In any proceeding before a Hearing Officer, oral testimony offered as evidence shall be taken only on oath or affirmation, and the Hearing Officer, their clerk, or other designee shall have the power to administer oaths and affirmations and to certify to official acts. Oaths of witnesses may be given individually or to a group together. Witnesses shall be asked to raise their right hands and to swear or affirm that the testimony they shall give will be the truth, the whole truth, and nothing but the truth.
(2) 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.
(3) All parties to the hearing may choose to be represented by an attorney.
(4) Formal rules of evidence or procedure shall not apply. The Hearing Officer has the discretion to exclude evidence if its probative value is substantially outweighed by the probability that its admission will necessitate undue consumption of time. The rules of privilege and of official or judicial notice shall be effective to the same extent as in civil and criminal proceedings. Irrelevant and repetitious evidence shall be excluded.
(5) The hearing shall be conducted in the English language. The proponent of any testimony by a witness who does not proficiently speak the English language shall provide an interpreter who has been certified as an interpreter by either the State of California or Santa Cruz County.
(6) At the discretion of the Hearing Officer, each party may have the opportunity to submit written briefs. The Hearing Officer will inform the parties in advance of the hearing whether the Hearing Officer will or will not accept written briefs.
(a) A pre-hearing brief may be submitted to the Hearing Officer and served on the opposing party no later than seven days prior to the hearing. Subject to the discretion of the Hearing Officer, the pre-hearing brief may be no longer than 10 double-spaced pages, not including exhibits.
(b) A post-hearing brief may be submitted to the Hearing Officer and served on the opposing party no later than 10 days after the hearing. Subject to the discretion of the Hearing Officer, the post-hearing brief may be no longer than five double-spaced pages, not including exhibits.
(c) No rebuttal briefs will be accepted, unless the Hearing Officer informs the parties they are appropriate.
(7) The Hearing Officer may postpone the hearing date upon a showing of good cause, continue the hearing during the course of the hearing, and make such other procedural orders and ruling as appropriate.
(8) In the event that the responsible party fails to appear and present evidence at the hearing, the Hearing Officer may base their decision solely upon the evidence submitted by the Licensing Official.
(9) Within 30 calendar days of the conclusion of the hearing or 40 days if post-hearing briefs are accepted, the Hearing Officer shall render a decision supported by written findings, which:
(a) Determines whether the person given notice has committed, maintained, permitted, or is otherwise strictly liable for the alleged violation(s) of this chapter;
(b) Orders the payment of civil penalties, including any other applicable enforcement or abatement costs, upon affirmation that the person given notice committed, maintained, permitted, or is otherwise strictly liable for the alleged violation(s) of this chapter; and
(c) Orders any other necessary action to be taken pursuant to Federal, State, and local law to correct any violations including, but not limited to, the termination of tenancies and the vacating of illegal structures. A decision imposing a special assessment shall follow the procedures set forth in SCCC 1.12.070(B).
(10) The decision of the Hearing Officer shall be final when issued in writing to the parties, and shall be enforceable 21 days after service of the decision by mail, unless an appeal of the decision has been filed by the person in accordance with subsection (E) of this section. The decision of the Hearing Officer shall include a statement of the appeal rights of any party to the proceeding as set forth in subsection (E) of this section.
(E) The provisions of Government Code Section 53069.4 shall be applicable to obtain judicial review of the decisions of the Hearing Officer. The decision of the Hearing Officer shall be subject to judicial review pursuant to the provisions of Government Code Section 53069.4 only if an appeal is filed with the Santa Cruz Superior Court Clerk, together with the applicable appeal fee, within 20 days after service of the decision of the Hearing Officer by first class mail, postage prepaid, including a copy of the affidavit or certificate of mailing. Any person filing an appeal shall serve a copy of the notice of appeal in person or by first class mail on the Hearing Officer with a copy to the Licensing Official.
(F) Upon receipt of a final decision of a Hearing Officer who orders the payment of civil penalties or payment of enforcement costs or other abatement costs, the County Counsel may file a civil action on behalf of the County in any court of competent jurisdiction to recover the civil penalties and costs of enforcement provided by this section and for injunctive or any other appropriate relief.
(G) In the event a civil action is initiated to obtain enforcement of the decision of the Hearing Officer and/or to abate a nuisance, and judgment is entered in favor of the County, the person against whom the judgment has been entered shall be liable to pay the County’s total costs of enforcement, including reasonable attorneys’ fees.
(H) The remedies and civil penalties provided by this section shall be in addition to any other remedies and penalties provided by law. [Ord. 5416 § 1, 2022].