San Andreas, CA…The Board of Supervisors will be considering the adoption of two sets of regulatory fees on October 15, 2019. The first set of fees that will be presented for consideration of the Board are proposed for the implementation of an ordinance to repeal and replace Chapter 17.95, the County’s commercial cannabis ordinance. Funding this new program will require the imposition of three separate fees: an application fee in the amount of twelve thousand, five-hundred and sixty-one dollars ($12,561), an annual continuation fee in the amount of two thousand, six hundred and six dollars ($2,606), and a fee to be charged for the appeal of staff decisions in the amount of nine-hundred and forty seven dollars ($947).

The second set of proposed fees would be imposed to fund the implementation of a criminal history and background review program that will be implemented if the Board of Supervisors passes an ordinance adding Chapter 9.22, entitled “Cannabis Background Clearance Badge” to the County Code. This new ordinance, if passed, will require that anyone who applies for a commercial cannabis permit or who wishes to work within commercial cannabis industry shall apply for and receive a Cannabis Background Clearance Badge (“CBCB”) from the County. Funding this proposed program will require the imposition of an application fee and an appeal fee. The proposed application fee will be in the amount of one-hundred and fifty three dollars ($153) and the proposed appeal fee, if passed, would be nine-hundred and forty seven dollars ($947).

These fees will be imposed to cover the reasonable regulatory costs to the County for issuing permits and clearance badges, performing inspections, and for administrative enforcement activities. There will be staff costs and other expenses associated with processing applications, conferring the privilege to engage in commercial cannabis activities as an owner or worker and to provide for administrative adjudication when applications are denied or enforcement actions are taken. In the case of the program contemplated under Chapter 9.22, there will be additional costs to cannabis workers and owners of cannabis business entities that will be paid directly to live scan service providers and to a third-party vendor tasked with conducting thorough background reviews for all CBCB applicants.

The amount of these fees have been established by calculating the anticipated burdens on County staff in implementing and administering the programs created by these two proposed ordinances and adding the costs of essential equipment and supplies that will be associated with administering the programs. The amount of these fees, as calculated, will not exceed the estimated costs of providing the services, processing the cannabis permit and CBCB applications, and in providing administrative adjudication associated with these two programs.  

The data relied on in calculating the costs required to provide the services associated with these programs is summarized in the attached spreadsheets and is available on the County’s website at the following address: http://cannabis.calaverasgov.us/Ordinances/Draft-Regulatory-Ordinance

These spreadsheets provide a breakdown of anticipated staff expenses for the cannabis regulatory program and the cannabis background check program as well as the non-staff expenses such as equipment, materials, and training.

For more information, contact the County Administrative Office, 209.754.6025