Mendocino County Ordinance Update Allows for Permit Transfers
By Lauren Mendelsohn, Esq.
November 4, 2019
On October 1, 2019 the Mendocino County Board of Supervisors adopted changes to the county’s cannabis cultivation rules that will have a major impact on farmers there as well as those who are looking to gain a foothold in this part of the Emerald Triangle. The ordinance updates went into effect on November 1, 2019.
Specifically, the county supervisors approved language that would allow for cultivation permits to be transferred from the original recipient to a third party, provided that the requirements are met. These include submission of a new application form (which is still being developed as of publication time), payment of an application fee, and a successful background check, among other things.
Mendocino County Ord. No. 4438
Up until this point, Mendocino County’s commercial cultivation ordinance lacked a means for permit-holders to transfer their permit to another operator (with the exception of family members for estate-planning purposes). This hindered their ability to sell their businesses if they desired, and likely decreased the value of their land and their licenses. The recent changes will bring Mendocino County in line with many other jurisdictions that allow cannabis permits to be transferred between owners if certain rules are followed.
The new language regarding permit assignments (§10A.17.070(K)) is included below:
Assignment of Permits. A permittee may assign a Permit to another person subject to the following provisions:
(1) Submission of the following to the Agricultural Commissioner:
(a) An application fee as set by resolution of the Board of Supervisors;
(b) A completed application form as provided by the department, and the submission of information or documents pursuant to Section 10A.17.090 relating to the assignee, including, but not limited to, the Live Scan criminal history inquiry process outlined in Section 10A.17.090(M);
(c) A copy of the existing Permit showing that it has not expired;
(d) Either:
(i) The existing Permittee’s request to assign all rights and responsibilities of the Permit to the assignee; or
(ii) In the event of the death or incapacitation of the existing Permittee, evidence of such death or incapacitation;
(e) Evidence that assignee’s legal interest in the real property involved allows for assignee’s use of the Permit; and
(f) An affidavit executed by the assignee attesting to the assignee’s agreement to comply with the terms and conditions of the Permit and all applicable laws and regulations.
(2) The assignment shall be effective upon the department’s written approval of the documentation submitted, notice that the assignee does not have a criminal history that includes any of the conditions listed in Section 10A.17.090(M), and the assigned Permit shall be granted subject to the terms and conditions of the original Permit.
(3) Permits issued on parcels subject to the Sunset Provision of Section 10A.17.080(B)(2) shall not be assignable pursuant to this Section 10A.17.070(K); provided, however, that permits issued on parcels located within a “CA” Cannabis Accommodation Combining District are assignable.
Mendocino County recently closed “Phase One” of their cultivation permit program, which was limited to persons who could demonstrate that they were growing cannabis there since prior to 2016. Phase Two applications are being accepted now for industrially-zoned parcels, and in mid-2020 Phase Three should open up to the public. Mendocino County’s cannabis cultivation program webpage is frequently updated, and can be viewed here.
This information is provided as an educational and informational service and is not intended as legal advice. For questions regarding obtaining a cannabis license in Mendocino County or elsewhere in California, please contact the Law Offices of Omar Figueroa at (707) 829-0215 or info@omarfigueroa.com to schedule a confidential legal consultation.