The County may impose administrative penalties, deny a license application, issue a conditional license, suspend, revoke, place on probation with terms and conditions, or otherwise discipline licensees and permittees (collectively referred to as “disciplinary action”), for any of the following reasons:
A. Failure or inability to comply with one or more provisions of this chapter or any rule or regulation adopted pursuant to this chapter.
B. Failure or inability to comply with any requirement of the Yolo County Code.
C. Failure to comply with conditions or provisions of the applicable cannabis use permit.
D. Failure to comply with any state or local law, ordinance, or regulation including, but not limited to, the payment of taxes.
E. Failure to provide information required by County.
F. Failure to conduct past or current cannabis operation(s) in a manner that ensures the security of the cannabis and safeguards against diversion for illegal purposes.
G. Previous violation by an applicant, licensee or owner, or previous violation at the proposed cultivation site, of any provision of the Yolo County Code or state law related to a cannabis related activity.
H. Creating or maintaining a public nuisance where the licensee or permittee has failed to comply with reasonable conditions to abate the nuisance.
I. Failure to allow unannounced inspections of the premises by County staff or law enforcement at any reasonable time, as required under this chapter, without notice.
J. Discovery of untrue statement(s) or an omission of a material statement in a license application.
K. Failure to comply with any state or local law, ordinance, or regulation conferring worker protections or legal rights on the employees of a licensee.
L. Failure to maintain safe conditions for inspection by the County.
M. Failure to enter information or the entry of false, misrepresented or incomplete data or information into the track and trace system.
N. Failure to enter or the entry of false, misrepresented or incomplete data or information as required to be submitted to the California Cannabis Authority.
O. Failure to comply with any other requirement specified in law.
P. Except as otherwise expressly provided in state law, conviction of an owner or employee of an offense that is substantially related to the qualifications, functions, or duties of a cannabis operation. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the County shall include, but not be limited to, the following:
1. A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code.
2. A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the Penal Code.
3. A felony conviction involving fraud, deceit, or embezzlement.
4. A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.
5. A felony conviction for drug trafficking.
Q. Except as provided in subsections (4) and (5) directly above, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related, and shall not be the sole ground for denial of a license. Conviction for any controlled substance felony subsequent to licensure shall be grounds for revocation of a license or denial of the renewal of a license.
R. If any of the disqualifying convictions apply to an employee who is not an owner, the conviction will not constitute a basis for disciplinary action if the licensee promptly terminates the employment relationship.
S. An owner has been subject to fines, penalties, or otherwise been sanctioned for cultivation or production of a controlled substance on public or private lands pursuant to Section 12025 or 12025.1 of the Fish and Game Code.
T. An owner has been sanctioned by a licensing authority or a city, county, or city and county for illegal cannabis activities or unauthorized commercial cannabis activities, or has had a cannabis operations license suspended or revoked in any jurisdiction in California in the three (3) years immediately preceding the date the application is filed with the County.
U. Failure to hold the applicable cannabis license issued by the State of California, or denial, suspension, lapse or revocation of the applicable license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the County, until the State of California, or its respective department or division, reinstates or issues a State license. Should the State of California, or any of its departments or divisions, revoke or terminate the license of a cannabis business, such revocation or termination shall also revoke or terminate the ability of a cannabis business to operate within the County of Yolo.
V. The County may recover the costs of investigation and enforcement of disciplinary action following the procedures set forth in this chapter.
W. The County may take disciplinary action against a licensee when the violation was committed by an owner, the licensee’s officers, directors, agents, independent contractors or employees while acting on behalf of the licensee or engaged in cannabis-related activity.
X. Upon the occurrence of three (3) final and conclusive notices of violation (“Notice” or “NOV”) of any provision of this chapter within a two (2) year period, all licenses held by the licensee or owner shall be automatically deemed terminated and revoked. For purposes of this section, a NOV is deemed final and conclusive upon the expiration of the time period set forth to appeal the notice in § 12-04.19 or upon a hearing officer’s determination of a violation.
Y. Upon termination, or revocation of a license, the licensee shall remain ineligible for a license for a minimum of two (2) years. The County, in its discretion, may extend the ineligibility time period up to, but not in excess of ten (10) years, depending on the egregious nature of the violation(s). (§ 2, Ord. 1557, eff. January 21, 2023)