Commercial Medical Cannabis Permits Available in Monterey County, CA

Currently the County of Monterey, CA is accepting applications to obtain a permit for all medical cannabis activities.  This application process started November 9, 2016.

Anyone interested in operating a medical cannabis business within the unincorporated area of the county must obtain the following:

Step 1:  Obtain and maintain a Use Permit/Coastal Development Permit

Step 2:  Obtain and maintain a Commercial Medical Cannabis Permit

Step 3:  Obtain and maintain a Business License

Step 4:  Comply with the self-reporting Commercial Cannabis Business Tax Law

Multiple licenses and permits (stacking)

Depending on the type of medical cannabis business there are different types of permits and business licenses required.  Subject to State restrictions by license type. Chapter 3.5 of Division 8, of the California Business and Professions Code contains limitations on the number and types of licenses that may be held by one licensee. Section 19328 of the Business and Professions code allows a “licensee” to hold a state license in up to two separate license categories (e.g. Cultivation Type 3A and Manufacturing Type 6). Restrictions apply to the types of licenses that can be held at one time.  The County may permit multiple cannabis businesses on one parcel (e.g. two or more businesses with separate premises on the same property) subject to Use Permit restrictions, and subject to limitations through future State regulations.

Step 1:  Obtain and maintain a Use Permit/Coastal Development Permit

Cannabis related land use permits will begin with a Development Review Committee (DRC) application. Materials submitted with the application should address those items listed in Section 21.67.100 of the Inland zoning ordinance (Title 21) or Section 20.67.100 of the coastal zoning ordinance (Title 20). Application materials must also address requirements specific to the type of cannabis business activity requested.

Cannabis operations must be located in the appropriate zoning district and may not be located within 600 feet of a school, park, or drug recovery facility. Please note: all cultivation must be within an existing warehouse or greenhouse that was legally established before January 1, 2016, and all operations and development must comply with all relevant County land use and development standards.

File all applications for a Use Permit for a commercial medical cannabis activity with the Resource Management Agency/Planning on the form.  Every application must have the following documentation:

• Notarized, written authorization from all persons and entities having a right, title or interest in the property that is the subject of the application consenting to the application and the operation of the proposed commercial medical cannabis activity on the subject property.
• The name and address of all persons and entities responsible for the operation of the commercial medical cannabis activity, including managers, corporate officers, any individual with an ownership interest, any member of a board of directors, any general or limited partner, and/or any member of a decision-making body for the commercial medical cannabis activity.
• Site plans, floor plans, conceptual improvement plans, and a general description of the nature, size, and type of commercial medical cannabis activity(ies) being requested.
• An operations plan including the following information:
  • On-site security measures both physical and operational and, if applicable, security measures for the delivery of cannabis associated with the commercial medical cannabis business;
  • Standard operating procedures manual detailing how operations will comply with State and local regulations; how safety and quality of products will be ensured; record keeping procedures for financing, testing, and adverse effect recording; and product recall procedures;
  • Proposed hours of operation;
  • Waste disposal information;
  • A water management plan including the proposed water supply and proposed conservation measures;
  • Medical recommendation verification and youth access restriction procedures;
  • Product supply chain including information on where cultivation occurs, where the product is processed or manufactured, any required testing of cannabis or cannabis products, transportation, and packaging and labeling criteria;
  • Record keeping policy;
  • Track and trace measures;
  • Sustainability measures including water efficiency measures, energy efficiency measures, high efficiency mechanical systems, and alternative fuel transportation methods;
  • Odor prevention devices;
  • Size, height, colors, and design of any proposed signage at the site; and
  • Parking plan.

Additional application requirements - The Director of Planning may require additional information depending on the type of Commercial Medical Cannabis activities: 

• In reviewing an application for a Use Permit to operate a cannabis manufacturing facility, the Director of Planning or his or her designee may request the following additional information:
  • Information on products used in the manufacturing process including the cannabis supply chain, liquids, solvents, agents, and processes. Cannabis shall be obtained from a licensed cultivator or licensed distributor operating in compliance with all local and state laws;
  • Storage protocol and hazard response plan;
  • Quality control measures; and
  • Any other information requested by the Director of Planning.

Detailed inland requirements can be found here:  
https://www.municode.com/library/ca/monterey_county/codes/code_of_ordinances?nodeId=TIT21ZO_CH21.67COMECAAC

Step 2:  Obtain and maintain a Commercial Medical Cannabis Permit

Permit Application

File all applications for a commercial medical cannabis permit with the Resource Management Agency/Planning on the form.  In all cases the application must have the following documentation:

• All applicants' names, mailing addresses, and if available, e-mail addresses.
• A twenty-four (24) hour or nighttime contact phone number.
• The physical address and assessor's parcel number(s) (APN or APNs) of the property upon which the proposed commercial medical cannabis operation will be located.
• Proof of ownership of premises, or if the premises on which the commercial medical cannabis operation is to occur is rented or leased, written permission from the property owner containing the property owner's notarized signature that authorizes the tenant or lessee to engage in commercial medical cannabis activities at the site.
• A "to scale" diagram of the premises, showing, without limitation, a site plan, building layout, all entry ways and exits to the facility, loading zones and all areas in which medical cannabis and medical cannabis products will be stored, grown or dispensed.
• If the applicant is a business entity or any form of entity, information regarding the entity, including, without limitation, the name and address of the entity, its legal status, and proof of registration with, or a certificate of good standing from, the California Secretary of State, as applicable.
• The full name, date of birth, social security number, present address and telephone number for all property owners and for all owners, supervisors, employees, and persons having a ten (10) percent or more financial interest in the commercial medical cannabis activity that is the subject of the application or, if the applicant is an entity, having a ten (10) percent or more financial interest in the entity.
• All property owners and all owners, supervisors, employees, and persons having a ten (10) percent or more financial interest must submit fingerprints and other necessary information for a criminal background check.
• Written proof (i.e., California driver's license, California identification card, or certified birth certificate) that all applicants, property owners, supervisors, and employees are eighteen (18) years of age or older.
• The names and addresses of any other commercial medical cannabis operations currently being operated by the applicant, or that had previously been operated by the applicant and a statement of whether the authorization for any such operation had been revoked or suspended and, if so, the reason therefore.
• A full description of the proposed activities and products of the commercial medical cannabis operation.
• A description of the type of State license(s) that will be required for the proposed operations pursuant to California Business and Professions Code Section 19300 et seq., including a description of the proposed total canopy area of any cultivation or nursery operation.
• A detail of the procedures to be utilized at the premises including a description of how chemicals, pesticides and fertilizers will be stored, handled, used and disposed of; and if applicable, manufacturing methods, the transportation process, inventory procedures, and quality control procedures.
• Proposed hours of operation.
• A waste disposal plan.
• If applicable, provide the applicant's seller's permit number issued pursuant to Part 1 (commencing with Section 6001) of Division 2 of the California Revenue and Taxation Code or indicate that the applicant is currently applying for a seller's permit.
• A statement by the applicant that it has the ability to comply with all laws regulating businesses in the State of California and that it shall maintain compliance during the term of the permit.
• Authorization for the County, its agents and employees to seek verification of the information contained in the application.
• Certification, under penalty of perjury, that all the information contained in the application is true and correct. 

Application materials for a Commercial Medical Cannabis Permit must contain all of the information required by Section 7.90.050 of the Monterey County Code. Chapter 7.90 can be found here:
https://www.municode.com/library/ca/monterey_county/codes/code_of_ordinances?nodeId=TIT7BUTALIRE_CH7.90COMECAPE

FEES:  The fee for a Commercial Medical Cannabis Permit application is a deposit fee. The County will track time invested on each permit application and refund the amount of the deposit not used or bill the applicant if County costs for processing the permit exceeds the deposit amount. A fee for renewal of a Commercial Medical Cannabis Permit will be due annually.

Step 3:  Obtain and maintain a Business License

If the Board of Supervisors adopts an ordinance establishing Business License requirements, an annual business license will be required. Business Licenses are not issued until all required County approvals (Use Permit/Coastal Development Permit and Commercial Medical Cannabis Permit) and State licenses, when applicable, have been obtained. Fees and application requirements will be established by the Treasurer/Tax Collector for Business Licenses if and when a Business License Ordinance is adopted by the Board of Supervisors and becomes operative.

• State Licenses:  Starting January 2018, a license to operate a commercial cannabis business will be required. Once a state license is required, Commercial Medical Cannabis Permits will not be approved or renewed without evidence of required a state license.  For information regarding State Licensing, please visit the frequently asked questions on the State of California website: http://www.bmcr.ca.gov/about_us/faq.shtml

Step 4:   Comply with the self-reporting Commercial Cannabis Business Tax Law

Beginning January 1, 2017, anyone engaged in commercial cannabis business activities as described in MCC Section 7.100.030(A) and (B) shall be subject to the annual tax. These activities include cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing cannabis in the unincorporated area of the County. This includes operations currently engaged in commercial cannabis business activities that have not yet obtained the required County permits or state licenses.
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Anyone engaged in commercial cannabis activities, as stated above, shall immediately self‐report such activities to the Monterey County Resource Management Agency (RMA) ‐ Planning Services using the Treasurer‐Tax Collector’s Commercial Cannabis Business Tax Self Reporting Form. The commercial cannabis business shall disclose the type, nature, location, and size of the cannabis operation. The completed self-reporting form should be emailed to cannabis@co.monterey.ca.us. If mailing hardcopies, please send to: Monterey County RMA c/o Jackie Nickerson, 168 W Alisal, 2nd Floor, Salinas, CA 93901.

Commercial Cannabis Business Tax Administrative Rules and Procedures found here:  http://www.co.monterey.ca.us/home/showdocument?id=2355

Frequently Asked Questions

Memo - Cannabis Permit Process Update (8/23/17)