2017 Annual Report: Focusing on the Future
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Behind the Scenes: Developing Cannabis Regulations in 2017

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The County Board of Supervisors passed regulations for the local cannabis industry in late-November 2017 after several public hearings, workshops and discussions on the topic.

The County’s new regulations took effect at the end of the year and created clear rules surrounding cannabis activities in SLO County, including the planting, growing, sales, testing, labeling, transportation, manufacturing, distribution, delivery, storage, processing or use/possession of cannabis in the unincorporated areas of SLO County.

The new regulations took effect in December 2017 and, as a result, all cannabis activities, except for personal and caregiver cultivations, require a County land-use permit to operate, a County business license and a State cannabis license. Under the new rules, certain cannabis activities are prohibited while others are allowed. (Read about the new rules here.)

But behind the scenes, several staff members from different County departments and programs helped develop recommendations for the regulations.

Over the course of the past two years, the County Agriculture/Weights and Measures Department, County Planning and Building Department, Administrative Office, County Counsel’s Office, Sheriff’s Office, District Attorney, and other County departments worked closely together to both respond to concerns regarding cannabis related activities and to assist in developing new cannabis regulations that apply to the unincorporated areas (each incorporated city has its own authority over cannabis activities within city limits).

Staff from these departments provided comments on numerous draft ordinances, offered guidance on how cannabis cultivation fits into the framework of existing pesticide regulations and other County regulations.  

Prior to developing permanent legislation around the local cannabis industry, the County established temporary rules that banned the cultivation of cannabis in all unincorporated areas, with certain exceptions. For much of 2017, these temporary rules allowed existing cultivators who registered in 2016 to continue growing until the temporary rules expired or were replaced. New grows were limited to six plants per person (or up to 30 plants for caregivers). Under the temporary rules, the County had approved 322 cultivation registrations, out of more than 400 that were submitted, which amounts to more than 90 acres of cannabis canopy and 168,776 cannabis plants that were legally allowed to grow in the unincorporated areas of SLO County in 2017.

The temporary rules expired when the permanent regulations took effect at the end of 2017. Under the new permanent regulation, the number of non-exempt cannabis cultivation operations is limited to the 141 operators who registered as a collective or cooperative under temporary ordinance.

Now that the permanent ordinance is in effect, the County’s role has shifted to one of education and regulation. Working diligently toward educating cannabis growers on existing pesticide laws and regulations, County staff in 2018 and beyond will ensure that the public have the information and support required to achieve compliance. Most cannabis cultivation requires a permit, which is approved by the County Planning and Building Department in coordination with the Agricultural Commissioner and Sheriff’s Office. Anyone proposing multiple cannabis activities per site (e.g. cultivation and manufacturing) must get a conditional use permit, which is a development plan and discretionary land-use permit approved by the Planning Commission. A permit is also required for sites that have had previous cannabis-related violations within the last two years.

If the County receives complaints that businesses and/or individuals in the unincorporated areas are not complying with existing rules, County Code Enforcement staff will investigate and work with the County departments of Agriculture/Weights and Measures, County Council and the Sheriff’s Office to apply the appropriate level of enforcement and help the businesses or individuals become compliant or shut down the operation.

In addition, the County will continue to serve as the land-use planning referral agency, providing discretionary permit applications for cannabis cultivation and other cannabis activities. In addition to receiving any required land use permits, all cannabis businesses must also obtain a business license through the County Auditor-Controller-Treasurer-Tax Collector’s Office. 

The County work with the California Department of Food & Agriculture’s (CDFA) CalCannabis Cultivation Licensing program to ensure that the requirements of state cultivation licenses are being properly followed.  In addition, CDFA will be implementing a “track and trace” system to ensure that the movement of cannabis through the supply chain is being properly recorded. The County Department of Agriculture/Weights and Measures will likely contract with CDFA to regulate the “track and trace” system on the local level. 

At the time of this report, the full extent and description of duties associated with working with the CDFA CalCannabis Cultivation Licensing program is still being determined.
​
Read more about cannabis in SLO County. 

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This website serves as a general report on the status of the County of San Luis Obispo in 2017. The County Administrative Office works with all County departments each year to produce and publish the annual report and presents to the Board of Supervisors and the public at a meeting the early the following year. The reports are published solely online to save costs. All previous annual reports can be reviewed on the County's main website at www.slocounty.ca.gov. 

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