File #: 21-830    Name:
Type: General Agenda Item Status: Passed - County Administrative Office
File created: 9/27/2021 In control: Board of Supervisors
On agenda: 10/5/2021 Final action: 10/5/2021
Title: a. Introduce, waive reading, and set October 19, 2021 at 10:30 a.m. as the date and time to consider the adoption of an ordinance amending Chapter 7.90 of the Monterey County Code to allow permitted cultivators to modify the total canopy area of any cultivation or nursery operation in their commercial cannabis permit on two occasions during the permit's annual term if certain criteria are met; and b. Provide direction to staff as appropriate.
Attachments: 1. Board Report, 2. Attachment A: Cultivator Letters On Canopy Adjustment and Taxation, 3. Attachment B: News Articles, 4. Attachment C: Good Standing Criteria, 5. Attachment D: Draft ordinance (redline version), 6. Attachment E: Draft ordinance (signed clean version), 7. PowerPoint Presentation Item No.pdf, 8. Completed Board Order Item No. 10
Title
a. Introduce, waive reading, and set October 19, 2021 at 10:30 a.m. as the date and time to consider the adoption of an ordinance amending Chapter 7.90 of the Monterey County Code to allow permitted cultivators to modify the total canopy area of any cultivation or nursery operation in their commercial cannabis permit on two occasions during the permit's annual term if certain criteria are met; and
b. Provide direction to staff as appropriate.
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors:

a. Introduce, waive reading, and set October 19, 2021 at 10:30 a.m. as the date and time to consider the adoption of an ordinance amending Chapter 7.90 of the Monterey County Code to allow permitted cultivators to modify the total canopy area of any cultivation or nursery operation in their commercial cannabis permit on two occasions during the permit's annual term if certain criteria are met; and
b. Provide direction to staff as appropriate.

SUMMARY
The Cannabis Program ("Program") holds monthly meetings to discuss cannabis industry concerns and share information. At the August 23, 2021 industry meeting, permittees cited a substantial decline in wholesale commercial cannabis pricing being experienced locally and throughout California. These collective concerns were voiced at the August 24, 2021 Board of Supervisors ("BoS") meeting via public comment, along with a request from the public that an ordinance be considered to provide tax relief to operators due to this loss of revenue. Several letters were also sent as public comment to the BoS. (Attachment A). The industry's input corresponded to recent articles found in the MJ Biz Daily dated August 6, 2021 and the Press Democrat dated August 27, 2021 respectively. (Attachment B).

Monterey County imposes an annual business tax on cannabis businesses pursuant to Monterey County Code Chapter 7.100 and such tax is collected by the Treasurer-Tax Collector's Office ("TTC"). This tax is imposed o...

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