Title
Adopt an ordinance amending Chapter 7.90 of the Monterey County Code to modify commercial cannabis permit requirements concerning criminal background checks.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Adopt an ordinance amending Chapter 7.90 of the Monterey County Code to modify commercial cannabis permit requirements concerning criminal background checks.
SUMMARY/DISCUSSION:
Chapter 7.90 of the Monterey County Code controls the issuance, modification, renewal, and operational requirements for a cannabis business to hold a commercial cannabis permit. This permit has an annual term and can be obtained after a property owner obtains all necessary land use entitlements for the applicable commercial cannabis activity, and complies with the application requirements.
Based on direction from the Board of Supervisors, staff has prepared an ordinance amending Chapter 7.90 to remove the requirement that property owners, supervisors, and employees submit to a criminal background check before obtaining a commercial cannabis permit. Owners and persons having a 20% or more financial interest must still undergo a criminal background check.
"Financial interest" is defined in Chapter 7.90 and is identical to the California Department of Food & Agriculture's ("CDFA") definition of financial interest. (3 CCR ? 8103). The definition reads:
"[A]n investment into a commercial cannabis operation, a loan provided to a commercial cannabis operation, or any other fully vested equity interest in a commercial cannabis operation. The following persons are not considered to hold a financial interest:
(1) A bank or financial institution whose interest constitutes a loan;
(2) Persons whose only ownership interest in the commercial cannabis operation is through an interest in a diversified mutual fund, blind trust, or similar instrument;
(3) Persons whose only financial interest is a security interest, lien, or encumbra...
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