Sonoma County is proposing several significant changes to its cannabis regulations to support the struggling legal cannabis market. These changes include lowering the cultivation tax, revising operational and zoning regulations, and removing caps on the number of cannabis businesses allowed in unincorporated areas.
One of the most notable proposals is to designate cannabis as “controlled agriculture” rather than a controlled substance. This reclassification would facilitate broader land use and relax certain regulations, allowing the industry to integrate more seamlessly into the agricultural landscape.
The county Board of Supervisors voted to reduce the cultivation tax by approximately 25%. This tax is based on the square footage of cultivation operations and varies depending on whether cannabis is grown indoors, outdoors, or using a combination of both methods. The new tax rates would be set at 36 cents per square foot for outdoor growers, $1.15 for mixed-light growers, and $3 for indoor growers. These adjustments are expected to take effect on July 1, following a second reading of the ordinance on May 6.
Zoning changes being considered include allowing cannabis operations in commercial, industrial, and agricultural zones. The proposed changes would relax existing setback requirements, particularly in industrial and commercial areas, where the 1,000-foot buffer from sensitive locations, such as schools, may be eliminated.
In agricultural areas, cannabis operations would need to maintain a 600-foot setback from residential properties, with a 100-foot setback in resource zones. Moreover, the limit on cultivation land would change from one acre per grower to 10% of the total parcel size, while the minimum parcel size for cultivation would decrease from 10 acres to 5 acres.
The proposed regulations would also allow for permanent on-site consumption lounges in commercial zones, although tasting rooms for cannabis consumption in agricultural zones would not be permitted. However, cannabis events could be held in rural agricultural areas, with permits allowing consumption during designated event days. Currently, the county restricts cannabis events to 104 days annually, with the possibility of hosting two-day special events every two years.
The county is also considering lifting the cap on retail and cultivation licenses, which currently limits the number of retail businesses to nine. Additionally, non-storefront delivery services would be permitted to operate within the county.
These regulatory changes come amid a decline in the legal cannabis market since its peak in 2020, leading to reduced revenue for local governments. The county’s Board of Supervisors initiated a comprehensive review of its cannabis program in 2021, which has taken longer than anticipated. A draft environmental impact report reflecting these changes will be released in May for public review, followed by meetings held by the planning commission this summer. The Board of Supervisors is expected to vote on the proposed changes by late October.
With these revisions, Sonoma County aims to stabilize its cannabis industry, which has faced challenges from oversupply and competition from unregulated markets. The adjustments are intended to foster a more resilient and economically viable cannabis sector in the region.
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