Santa Cruz County considers on-site cannabis use at retailers, farms

SANTA CRUZ — Halloween and all of its orange pumpkins and ghostly white costumes may be fast approaching, but next week’s Santa Cruz County Board of Supervisors meeting will have a distinctly green hue.

At its meeting Tuesday, the board is set to consider a pair of proposed ordinances that would permit on-site cannabis consumption at existing retailers and farming locations. To add some predictability to the meeting’s jam-packed agenda, the items will be heard no sooner than 1:30 p.m. inside the board’s chambers at 701 Ocean St. in Santa Cruz.

The first item pertains specifically to consumable items that can be inhaled at existing retail locations or on adjoining parcels in unincorporated territory. According to the staff report, the designated puffing zones would be subject to strict ventilation and odor requirements, and must comply with state smoke-free workplace regulations.

According to the county’s Cannabis Licensing office, there are 12 licensed dispensaries in unincorporated territory, though not all local retailers would be able to develop an on-site consumption system due to space, site or economic restrictions.

Some local farmers want in on the action too, so a second ordinance has been drawn up that would permit retail sales and establish similar consumption regulations where the buds themselves are actually grown. In a county whose economy is largely dependent on tourism, proponents say these new rules could encourage agrotourism for visitors and locals that are interested in learning more about the cannabis industry and the cultivation process.

The farm-focused ordinance, according to county staff, is intended as a three-year pilot program that allows for launch of the operational changes while also making room for feedback and monitoring from the operators, neighbors, general public and county staff themselves.

Based on county staff discussions with tour operators in other jurisdictions, the minimum viable amount of participating retail farms for the program is three, but five to seven is ideal.

The staff recommendations come to the board after almost a year of community discussions, consultations with farmers and retailers, as well as research and informational interviews with neighboring jurisdictions.

According to the agenda report, a thorough economic analysis measuring the financial impact of on-site consumption sites at farms and retailers was limited, though staff speculated the changes would bring a marginal increase to the total Cannabis Business Tax collected by the county each year. Still, staff noted, broader financial benefits may arise should the ordinances help bolster the county’s status as a desirable tourist destination. It could also encourage collaboration among local businesses as they develop tours featuring multiple destinations and a variety of activities.

Two-unit developments

Also appearing on the board’s agenda is another proposed ordinance that would align the county with a recently-implemented state housing law.

The ordinance was drawn up as a local codification of state Senate Bill 9 which allows property owners within a single-family residential zone to build two units, or subdivide a lot into two parcels for a total of four units.