County seeks input on pot legalization

“We want to really hear back from the stakeholders and the public,” said Assistant County Manager Mike Callagy. “We’re really trying to set [the rules] up in an organized and deliberate way.”

The draft ordinance includes establishing a county licensing board with oversight from Environmental Health, Agriculture, as well as Building and Planning departments, he said. Applicants must go through a review process that includes providing information about the location, passing a criminal background check and paying associated permitting fees, according to the draft ordinance.

As proposed, applicants would also have to submit a detailed description and plan for hiring local residents, an organizational chart and confirm all employees are 21 years or older. They must also provide a security plan that at a minimum includes video surveillance and an alarm system. Business owners can also not be a licensed retailer of alcohol or tobacco products and must have a state license to grow marijuana. Applicants must renew their license with the county every year, according to the draft ordinance.

The county does not want to displace current agricultural businesses that are doing well and is instead targeting its rules to allow marijuana growing in underutilized or empty greenhouses, Callagy said.

The draft explicitly outlines that other businesses, such as commercial outdoor cultivation or operating a dispensary, are prohibited. However, delivery sales and transporting on roads is allowed per state laws, according to the draft. It would also remain illegal for individuals to grow plants outdoors for personal use.

The county held extensive study sessions before officials agreed to first proceed with greenhouse cultivation rules. The board opted to wait before discussing further activities such as sales and manufacturing, which at least one supervisor has supported but others expressed concerns. While the voter-approved Proposition 64 legalized recreational marijuana for adults 21 and older, commercial operations have been on hold as state officials strive to develop a licensing system by 2018.

In the meantime, cities and counties across the state reacted differently, with some enacting moratoriums as strict as possible while others opted for a more welcoming stance.

For example, Half Moon Bay is also planning to allow commercial cultivation in greenhouses and Pacifica is looking to legalize certain dispensaries. On the other end of the spectrum, San Mateo and Foster City have banned all commercial activity and went so far as to prohibit medical marijuana smoking in multi-family housing.

Countywide, voters approved Proposition 64 last year at a higher rate than the statewide average. It’s been almost a year since the Adult Use of Marijuana Act passed, which allows adults to grow up to six plants and to be in possession of an amount for personal use. Commercial activities, aside from medical marijuana, are currently not allowed until the state rolls out its own licensing system.

The Board of Supervisors and Half Moon Bay City Council have cited the coastside agricultural market, particularly the dwindling cut-flower industry that has suffered in the face of international competition, as part of their rationale to allow marijuana cultivation. Both draft proposals for the different jurisdictions would only allow cultivation in existing indoor facilities zoned for agriculture. 

“As you know, it’s greenhouse cultivation only that [the county is] looking at, at this point in time. And in the future, we’ll hold a study session with the board to also look at retail sales and potentially manufacturing to see what they’d like to do,” Callagy said.

Officials may also consider proposing a locally controlled tax, which would be in addition to already high state taxes. Some supervisors have expressed apprehension about levying more taxes on marijuana sales or cultivation citing concerns about turning people toward a cheaper black market.

Half Moon Bay, on the other hand, may consider asking voters to approve a locally-controlled tax as a way to diversify revenue sources in a the city that is heavily reliant on tourism. Half Moon Bay’s rules would only apply to its own city limits, which are bordered by the county.

The county’s ordinance would apply to unincorporated areas that include a large portion of the greenhouses along State Route 92 and Highway 1 as well as the town of Pescadero.

The goal is to gather public input before returning to the board likely on Nov. 21, Callagy said.

The next community meeting is 7 p.m. Monday, Oct. 30, in room 101 at 455 County Center, Redwood City. Another meeting will be held 7 p.m. Nov. 9 at the Ted Adcock Community Center, 535 Kelly Ave., Half Moon Bay. Visit smcgov.org for more information.  

samantha@smdailyjournal.com

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Twitter: @samantha_weigel