This Chapter shall be known as and may be referred to in all proceedings as "Cannabis Facilities Code" or "CFC."

It is the purpose and intent of this Chapter to regulate the processing, manufacturing, testing, dispensing, retailing and distributing of cannabis within the unincorporated areas of Mendocino County in a manner that is consistent with current State law and to establish a program to be implemented in coordination with the State of California's implementation of the Medical and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA") and subsequent legislation.

All commercial processing, manufacturing, testing, dispensing, retail sales and distributing of cannabis within the jurisdiction of the County of Mendocino inland of the coastal zone shall be controlled by the provisions of this Chapter, regardless of whether the business existed or occurred prior to the adoption of this Chapter. Nothing in this Chapter is intended, nor shall it be construed, to exempt the commercial processing, manufacturing, testing, dispensing, retailing, or distributing of cannabis for, as defined herein, from compliance with all other applicable Mendocino County zoning and land use regulations, or other applicable provisions of the County Code, or from any and all applicable local and state construction, electrical, plumbing, environmental, or building standards or permitting requirements, or from compliance with any applicable state laws.

These regulations shall apply to the location and permitting of commercial processing, manufacturing, testing, dispensing, retailing and distributing of cannabis for in zoning districts within which such use is authorized, as specified in this Chapter.

Nothing in this Chapter is intended, nor shall it be construed, to preclude a landlord or property owner from limiting or prohibiting commercial processing, manufacturing, testing, dispensing, retailing and distributing of cannabis for on private property.

All persons operating facilities and conducting activities associated with the cultivation of cannabis, as defined in this Chapter, are subject to possible federal prosecution, regardless of the protections provided by state or local law.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

The processing, manufacturing, testing, dispensing, retailing and distributing of cannabis is prohibited in all zoning districts in Mendocino County governed by Division I of this Title, except as allowed by this Chapter.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

The definitions in this Chapter are intended to apply solely to the regulations in this Chapter or Chapters that specifically refer to this Chapter. Applicable definitions in Mendocino County Code Sections 10A.17.020 and Section 20.242.030 shall also apply to this Chapter. As used herein the following definitions shall apply:

"A-license" means a state license issued for cannabis or cannabis products that are intended for adults twenty-one (21) years of age and over and who do not possess a physician's recommendation.

"A-licensee" means any person holding a license for cannabis or cannabis products that are intended for adults twenty-one (21) years of age and over and who do not possess a physician's recommendation.

"Bureau" means the Bureau of Cannabis Control.

"Cannabis product" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. "Cannabis product" also means marijuana products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medical cannabis products.

"Cannabinoid" or "phytocannabinoid" means a chemical compound that is unique to and derived from cannabis.

"Cannabis facility" means a business and/or structure or location where, or from where, retailing, distributing, processing, testing, manufacturing or delivering of cannabis is operating.

"Cannabis Facility Business License" or "CFBL" means a revocable, limited-term grant of permission to operate a cannabis processing, manufacturing, testing, retailing/dispensing, distributing, and/ or microbusiness within the County. The business license shall be in the form prescribed by the Tax Collector and must contain, at a minimum, the licensee's name, the business name, type of business, location of business, commencement and expiration dates of the license, and fee remitted. A Cannabis Facilities Business License shall be required for the operation of any cannabis facility.

"CFBL Holder" means any person holding a cannabis facility business license issued pursuant to Chapter 6.36, including any review or permit required by this Chapter.

"Caregiver" or "primary caregiver" has the same meaning as that term is defined in Section 11362.7 of the Health and Safety Code.

"Commercial cannabis activity" includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of cannabis and cannabis products.

"Customer" means a natural person twenty-one (21) years of age or over or a natural person eighteen (18) years of age or older who possesses a physician's recommendation.

"Day care center" has the same meaning as in Section 1596.76 of the Health and Safety Code.

"Delivery" means the commercial transfer of cannabis or cannabis products to a customer.

"Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer.

"Distribution" means the procurement, sale, and transport of cannabis and cannabis products between licensees.

"Edible cannabis product" means cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food as defined by Section 109935 of the Health and Safety Code or a drug as defined by Section 109925 of the Health and Safety Code.

"Environmental Health" means the Environmental Health Division of the Mendocino County Department of Public Health or the authorized representatives thereof.

"Extraction" means a process by which cannabinoids are separated from cannabis plant material through chemical or physical means.

"License" means a state license issued pursuant to MAUCRSA, and includes both an A-license (Adult Use) and an M-license (Medical), as well as a testing laboratory license.

"Licensee" means any person holding a license pursuant to MAUCRSA, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.

"M-license" means a state license issued for commercial cannabis activity involving medicinal cannabis.

"M-licensee" means any person holding a license for commercial cannabis activity involving medicinal cannabis.

"Manufacturing Level 1 (Non-Volatile)" means facilities that manufacture cannabis products using nonvolatile solvents, or no solvents or volatile solvents using a non-volatile method.

"Manufacturing Level 2 (Volatile)" means facilities that manufacture cannabis products using volatile solvents.

"MAUCRSA" means the Medical and Adult-Use Cannabis Regulations Safety Act, or subsequent legislation amending its provisions.

"Mendocino County Certified Unified Program Agency (CUPA)" means the agency certified to implement the unified hazardous waste and hazardous materials management regulatory program set forth in Section 25404 of the Health and Safety Code.

"Microbusiness" means at least three of the following commercial cannabis activities: (1) cultivation of cannabis on an area 10,000 square feet or less; (2) distribution; (3) Manufacturing Level 1 (Non-Volatile); and (4) acting as a licensed retailer/dispensary under this Chapter, provided such licensee/CFBL Holder complies with all requirements imposed by this Chapter on each of the three or more activities, to the extent the licensee/CF BL Holder engages in such activities.

"Nonvolatile extraction" means an extraction method using nonvolatile solvents (such as carbon dioxide or "C02") to manufacture cannabis products.

"Nonvolatile solvent" means any solvent used in the extraction process that is not a volatile solvent. A nonvolatile solvent includes carbon dioxide used for extraction.

"Person" means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number.

"Processing Facility" means a location or facility where cannabis is dried, cured, graded, trimmed, and/or packaged at a location separate from the cultivation site where the cannabis is grown and harvested.

"Retailer/Dispensary" means the retail sale and delivery of cannabis or cannabis products to customers.

"State" means the State of California.

"Testing" means testing of cannabis and cannabis products.

"Testing laboratory" means a facility, entity, or site in the State that offers or performs testing of cannabis or cannabis products and that is both of the following:

(A)

Accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state; and

(B)

Licensed by the Bureau.

"Volatile extraction" means an extraction method using volatile solvents to manufacture cannabis products.

"Volatile solvent" means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures.

"Youth center" has the same meaning as in Section 11353.1 of the Health and Safety Code.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

The purpose of these provisions is to classify uses into a limited number of use types on the basis of common functional, product or compatibility characteristics, thereby providing a basis for regulation of uses in accordance with criteria which are directly relevant to the public interest.

(A)

Processing Facilities.

(1)

Processing facilities, as defined herein, shall be an agricultural use type.

(2)

Processing facilities for cannabis grown on site pursuant to a permitted cultivation operation shall be allowed as an accessory use in all zones where cultivation is permitted pursuant to Chapter 10A.17.

(B)

Manufacturing Facilities.

(1)

Manufacturing facilities, as defined herein, shall be an industrial use type.

(2)

Exception for home manufacturing.

(a)

Manufacturing (Level 1) as an accessory use to cultivation is allowed in all zones where cultivation is allowed pursuant to Chapter 10A.17 and is subject to the provisions of Chapter 20.156 or Chapter 20.160, as applicable, and the following provisions:

(i)

The cultivator engaging in home manufacturing must be permitted to cultivate pursuant to Chapter 10A.17 and must reside on the property where the home manufacturing is occurring.

(ii)

All cannabis used in home manufacturing must be cultivated on site, under a cultivation permit issued pursuant to Chapter 10A.17.

(iii)

The manufacturing of edible cannabis products is permitted in compliance with State of California regulations.

(iv)

Only nonvolatile extraction methods may be used.

(C)

Testing Laboratories and Research Institutions.

(1)

Testing laboratories and research institutions, as defined herein, shall be a commercial use type.

(2)

Testing licensees/CFBL Holders shall not:

(a)

Hold a license in another facility or category established by this Chapter; or

(b)

Own or have an ownership interest in any other facility or category licensed pursuant to this Chapter.

(D)

Retailer/Dispensary.

(1)

A Retailer/Dispensary, as defined herein, shall be a commercial use type.

(2)

A Retailer/Dispensary may be permitted and issued a CFBL as only a Non-Storefront Retailer, as defined by State law and regulation.

(3)

A Retailer/Dispensary with a storefront shall only be allowed pursuant to Table 1 of Section 20.243.060.

(4)

This section applies to all retailers/dispensaries, as defined in Section 20.243.030 of this Chapter.

(a)

Retailers/dispensaries that cultivate nursery stock or seeds must comply with the provisions of Mendocino County Code Chapter 10A.17.

(b)

Retailers/dispensaries that engage in mobile deliveries are prohibited from having any advertisement of their business or services on their delivery vehicles.

(c)

On-site consumption of cannabis is permitted in outdoor areas of A-license retailers/dispensaries, such as patios or decks, and shall adhere to the provisions of Mendocino County Code Chapter 9.32.

(d)

Promotional items and free product give-a-ways by A-license retailers/dispensaries is prohibited.

(E)

Distribution Facility.

(1)

A distribution facility shall be a site or location where distribution, as defined herein, occurs.

(2)

Distribution CFBLs may be issued in the following categories, as these categories are defined in State laws and regulations, and subject to the restrictions of this Chapter: Distributor Transport Only, Self-Distribution, and Distributor.

(3)

A distribution facility shall be a commercial use type, provided, however, that a distribution CFBL may be issued for a location in any zoning district as an accessory use to cultivation or other CFBL types at that location, but the distribution CFBL shall be limited to the distribution of cannabis cultivated at that location, cannabis processed at that location, cannabis products manufactured at that location, or, for a retailer/dispensary, the distribution of cannabis or cannabis products to be sold at that location.

(F)

Microbusinesses.

(1)

Microbusiness, as defined herein, shall be the use type which is the predominant use type of that microbusiness.

(2)

Microbusinesses with on-site cannabis cultivation must comply with and obtain a permit pursuant to Chapters 10A.17 and 20.242 of the Mendocino County Code.

(3)

Microbusinesses with on-site processing, distribution, wholesale, manufacturing and/or retail sales or dispensing of its products shall comply with all applicable sections of this Chapter.

(4)

Microbusinesses proposed in the General Commercial (C2) zoning district must demonstrate that the retail component of the Microbusiness is the primary use and other uses are incidental and subordinate to the retail component.

(5)

All components of a microbusiness must comply with the development requirements of the zoning district in which it is located.

(6)

The manufacturing of edible cannabis products is permitted in compliance with State of California regulations.

(7)

Notwithstanding Table 1 of Section 20.243.060, a microbusiness may be allowed in any zoning district provided that (a) the microbusiness either (i) qualifies as a home occupation pursuant to Chapter 20.156; or (ii) is permitted as a cottage industry pursuant to Chapter 20.160; and (b) there is a cultivation site permitted pursuant to Chapters 10A.17 and 20.242.

(8)

Microbusinesses which are either a home occupation or cottage industry shall (a) have any distribution component be limited to Distribution of the microbusiness' own cannabis and cannabis products; and (b) have any retail/dispensary component be limited to the number of daily customers as allowed by either Chapter 20.156 or Chapter 20.160.

(9)

All cultivation, manufacturing, distribution, and retail activities performed by a licensee/CFBL Holder under a permitted microbusiness shall occur on the same licensed premises.

(10)

Square footage related to cultivation of cannabis or the processing of the cannabis grown on-site as part of a microbusiness shall not be counted toward the maximum square footage allowed under either a home occupation or cottage industry.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

(A)

All cannabis facilities shall comply with all applicable regulations in the Mendocino County Code and State law.

(B)

Cannabis facilities other than Manufacturing Level 2 (Volatile) or Microbusinesses with a cultivation site shall not be allowed within a six-hundred-foot radius of a youth-oriented facility, a school, a park, or any church or residential treatment facility, as those terms are defined in section 10A.17.020 of the Mendocino County Code, that is in existence at the time a Cannabis Facility Business License is applied for; Manufacturing Level 2 (Volatile) facilities and Microbusinesses with a cultivation site shall not be allowed within one thousand (1,000) feet of such places or facilities. The distance between the uses listed in the preceding sentence and the cannabis facility shall be measured in a straight line from the nearest point of the cannabis facility to the nearest point of any fenced, maintained or improved area where the users of the facility are typically present during normal hours of operation.

(1)

Applicants may apply for a reduction in the setback described in this paragraph (B) through an administrative permit pursuant to section 20.243.090 of this Chapter.

(C)

All structures associated with permitted cannabis facilities shall comply with the setbacks established by the zoning district in which the cannabis facility site is located.

(D)

All cannabis facilities shall be located in a permanent building in conformance with the California Building Code as adopted by Mendocino County for a commercial or industrial building, as applicable, and shall not be located in a dwelling unit, recreational vehicle, cargo container, motor vehicle or other similar personal property, except as provided for by Mendocino County Code Chapter 20.156 or Chapter 20.160.

(E)

The processing, manufacturing, testing, dispensing, retailing, and distributing of cannabis is not permitted within any habitable space (i.e., kitchen, bedroom, bathroom, living room or hallway) of a dwelling unit nor is it permitted within any required parking space, except as otherwise allowed in this chapter, except as provided for by Mendocino County Code Chapter 20.156 or Chapter 20.160.

(F)

Cannabis facilities proposed in Industrial zoning districts shall be subject to the provisions of Development Review pursuant to Chapter 20.188, as applicable.

(G)

Cannabis facilities shall implement the following security measures:

(1)

Sufficient security measures to both deter and prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products.

(2)

Security measures to prevent individuals from remaining on the premises of the facility if they are not engaging in activity expressly related to the operations of the facility.

(3)

Establishing limited access areas accessible only to authorized personnel.

(4)

Storing all cannabis and cannabis products in a secured and locked room, safe, or vault and in a manner sufficient to prevent diversion, theft, and loss.

(5)

Diversion, theft, loss or any criminal activity involving the facility or any other breach of security must be reported immediately to law enforcement.

(H)

Cannabis remnants, infused products, bi-products, and other waste material shall be disposed of in a safe, sanitary, and secure manner. Any portion of the cannabis remnants, products or bi-products being disposed of will be rendered unusable before disposal, will be protected from being possessed or ingested by any person or animal, and shall not be placed within the facility's exterior refuse containers.

(I)

Signage associated with permitted cannabis facilities shall meet the applicable requirements set forth in the Mendocino County Zoning Code for signage and other applicable State regulations.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

All cannabis facilities shall be permitted in accordance with this Section. All new cannabis facilities shall obtain approval from other State and Local agencies with permitting jurisdiction. Cannabis facilities may be allowed with an approved Zoning Clearance or Administrative Permit as required for the zoning district in which the cannabis facility is located as listed in Table 1, below:

Table 1 Permit Requirements for Processing, Manufacturing, Testing, Retailers, Distribution, and Microbusiness by Zoning District and Cannabis Facilities Code Permit Type

— = Not Allowed

ZC = Zoning Clearance

AP = Administrative Permit

* See Section 20.243.040(A)(2) regarding processing of cannabis grown on site.

** See Section 20.243.040(B)(2) regarding home manufacturing exception.

Notwithstanding the above Table 1:

(A)

Distribution licenses shall be allowed in any zoning district as an accessory use to other cannabis facilities on the site, subject to the limitations of paragraph (E) of section 20.243.040.

(B)

Non-Storefront Retail locations shall be permitted in any zoning district as an accessory use to a cultivation site under application review or permitted pursuant to Chapters 10A.17 and 20.242.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

(A)

Existing packing and processing facilities. Establishment of new cannabis facilities may be considered with an Administrative Permit in FL, AG, or RL Districts, and in any other zoning district where such facilities exist subject to compliance with the County's existing nonconforming use requirements in Chapter 20.204, and consistent with Section 20.243.090 Planning Approval Required to Process, Manufacture, Test, Dispense, Retail, and Distribute, Cannabis, where all of the following can be demonstrated:

(1)

The site has been previously permitted as a packing and processing facility prior to the effective date of these regulations.

(2)

The site is developed with an existing packing and processing facility, including buildings, roads, power source, water source, and sewage disposal system.

(3)

There will be no net expansion of impervious surfaces.

(4)

No trees shall be unlawfully removed.

If all of the above are true, substantial improvements to existing facilities and systems would be acceptable, subject to Administrative Permit conditions of approval and subject to the making of findings consistent with those found in Chapter 20.204, as applicable.

(B)

Business offices for cannabis at which no cultivation, processing, storage, handling, or distribution of cannabis in any form occurs shall be allowed in any zone in which business offices are allowed. Business offices that are clearly incidental and secondary to the use of the premises for residential purposes where cannabis cultivation or manufacturing may occur are subject to the provisions of Mendocino County Code Chapter 20.156. Cannabis business offices shall be subject to all the regulations and standards applicable to business offices in the Mendocino County Code.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

All cannabis retailers/dispensaries operating with an approved business license prior to the effective date of these regulations, are eligible to continue operations without obtaining any additional permit which may be required by this Chapter, but shall comply with the requirements listed in sections 20.243.040 and 20.243.050, except for paragraph (C) of section 20.243.050, and any requirements of State law.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

(A)

Planning Approval Procedure. Each cannabis facility site is subject to one (1) of the following planning procedures that correspond to the applicable zoning district, as specified by Table 1 of this Chapter. Planning and Building shall review the application in accordance with the applicable planning approval process.

(1)

Zoning Clearance. Planning and Building Services and the Department of Environmental Health shall review projects for compliance with applicable local regulations.

(2)

Administrative Permits.

(a)

In accordance with the Administrative Permit review procedure listed in Chapter 20.192, the Zoning Administrator shall approve, conditionally approve or deny an Administrative Permit for a cannabis facility based on the following special findings:

(i)

The cannabis facility site is allowed in the zoning district and is in compliance with the provisions of this Chapter and Chapter 10A.17, as applicable.

(ii)

The cannabis facility will avoid or minimize odor and light impact on residential uses.

(iii)

The findings required by Section 20.192.020 shall also be made.

(b)

In addition to the requirements of paragraph (a) above, administrative permits may be approved, conditionally approved or denied for the reduction of the setback provided for in section 20.243.050(B) based on the following special findings:

(i)

That there be special circumstances applicable to the property involved, including size, shape, topography, location or surrounding;

(ii)

That the granting of such reduction will not be materially detrimental to the public welfare or injurious to the property or improvements in such vicinity and zone in which the property is located; and

(iii)

That the granting of such reduction will not adversely affect the General Plan.

(B)

The County shall notify any State licensing authority, as defined by the MAUCRSA, as applicable, whenever the County business license or Administrative Permit has been revoked or terminated.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

Any person or entity that wishes to engage in the processing, manufacturing, testing, dispensing, retailing, and distributing, of cannabis shall submit an application to Planning and Building. Applications for cannabis facilities shall be made upon such forms and accompanied by such plans and documents as may be prescribed by Planning and Building so as to assure the fullest practical presentation of facts for the review of the application. An application fee will be due at the time the application is submitted and is non-refundable.

Applicants for a permit for a cannabis facility shall provide the standard application materials for Administrative Permits and all of following information on, or as an attachment to, the application:

(A)

An operations plan which provides a description of the proposed processing, manufacturing, testing, dispensing, retailing, or distributing of cannabis activities including, but not limited to, permit type, size of facility or structure where business will be conducted, description of the nature of the activity, product type, average production amounts (including each product produced by type, amount, process, and rate), source of cannabis material product(s), estimated number of employees, hours of operation, visibility, and anticipated number of deliveries and pickups.

(B)

Planning and Building is hereby authorized to require in the permit application any other information reasonably related to the application including, but not limited to, any information necessary to discover the truth of the matters set forth in the application.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

An Administrative Permit may be revoked or modified according to the revocation or modification provisions in Mendocino County Code sections 20.192.060. Grounds for seeking revocation or modification include: non-compliance with one (1) or more of the requirements listed in this Code; failure to comply with the requirements of the Mendocino County Certified Unified Program Agency (CUPA), or any of the grounds listed in code sections identified in this paragraph, as applicable, and any successor provisions.

(Ord. No. 4538, § 65(Exh. A), 9-10-2024)

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