COUNTY OF LAKE - File #: 26-0605

• File #: 26-0605
• Version: 1
• Type: Ordinance
• Status: Agenda Ready
• File created: 6/3/2026
• In control: BOARD OF SUPERVISORS
• On agenda: 6/23/2026
• Title: 11:00 A.M. - PUBLIC HEARING - Consideration of Ordinance to Amend Chapter 21, Article 27 of the Lake County Code regarding Commercial Cannabis Regulations (Continued from March 10, April 7, and June 2, 2026)
• Sponsors: Community Development

Memorandum

Date:                                          June 23, 2026

To:                                          The Honorable Lake County Board of Supervisors

From:                                          Mireya G. Turner, Community Development Director

                                          Mary Claybon, Senior Planner

Subject:                     11:00 A.M. - PUBLIC HEARING - Consideration of Draft Ordinance to Amend Chapter 21, Articles 8, 18, 19 and 27 regarding Commercial Cannabis Regulation

Executive Summary: The Board has discussed and given direction on Article 27 amendments on March 10, April 7, and June 2, 2026. Some Board requests are reflected in the attached Ordinance (Attachment 1); while other requests have been reserved for consideration in the upcoming Article 73 draft and are listed below. The proposed amendments to cannabis-related land uses require amendments to Articles 8, 18, 19, and 27 of the Zoning Code, summarized in the attached Table (Attachments 2, 3, 4, and 5) Lake County Zoning Code Article 27 is an extensive document, regulating various land uses, including commercial cannabis. For ease of review, the redlined version of Article 27 is an excerpt of the pages relating to commercial cannabis (Attachment 6). The maps of “FPZ” Farmland Protection Zone boundaries are also included as Attachment 7, for the Board’s convenience.

Article 27 - Proposed Amendments

•                     Setback from hemp

•                     Removal of commercial cannabis cultivation from “SR” Suburban Reserve zoning district

•                     Cannabis Retail - permitting requirements

•                     Maximum canopy

•                     Applicant and Property Owner Identification and Background Check

•                     Background check review - responsible department

•                     Operating hours

•                     Opt Out and Reduced Canopy guidelines

•                     Removal of 10-year permit expiration and renewal requirements

•                     Setbacks from off-site residences

•                     Incomplete, Inactive and Abandoned applications

•                     Surety Bond

•                     Additional restrictions for greenhouses

•                     Commercial cannabis exclusion areas

•                     Buffer from “FPZ” Farmland Protection Zone

•                     Anchor point foundations in “FPZ”

•                     Riparian setbacks

•                     Annual Performance Reports - review

•                     Public access to Annual Performance Reports and Inspection Reports

•                     Adding Type 5 cultivation use permit

•                     Reduction in frequency of compliance site monitoring visits

•                     Staff measurement of cannabis canopy

Article 73 - Items from Previous Board Discussions

•                     Regulations for Retail

•                     Regulating Density of Retail Permits

•                     Hydrology Reports - Standard Requirements

•                     Regulation/Fine/Citation for water overuse

•                     Update Farmland Protection Zone Guidelines for future boundary amendments

•                     Odor - Prohibition on Mixed Light/Indoor

•                     Water Board Notice of Applicability - Modify/Remove Deadline

•                     Synchronize Landscaping Requirement with State Fire Codes

•                     Opt Out - options to avoid expiration

•                     Options to permanently reduce total approved canopy

•                     Fines/citations for late submission of Compliance Review Report and/or fee payment

•                     Add Volatile Manufacturing as Use in “M1” Commercial and Manufacturing Zoning District

•                     Application: Consequence for active warrants for applicants and/or property owners

•                     Review regulations for possible areas of overreach

Note: the pausing of an application for notification of active warrant has been removed from the draft Article 27 Ordinance and moved to the Article 73 list to allow for further review.

Option for Extension of Use Permit

During the discussion at the meeting on June 2, 2026, the Board voiced interest in options for avoiding expiration of a cannabis-related use permit during the initial years of use. Article 60 of the Lake County Zoning Code states that a use permit will expire two years after it is granted if it is not used, unless substantial physical construction and/or use of property in reliance on the permit has commenced prior to its expiration. It describes this construction/use as follows:

“1. A documented expenditure of at least fifteen (15) percent of the total estimated cost of the project (excluding land and financing costs) or construction of buildings or facilities; up to one-third (1/3) of the costs may be for grading; or

2. A documented expenditure of at least fifteen (15) percent of the total estimated cost of the project (excluding land and financing costs) on preparation of construction plans including: grading, drainage, building, engineering, architectural and landscape plans; or

3. For projects utilizing existing buildings, or for uses not requiring construction; the intended purpose or activity for which the permit was issued must be commenced.”                     

As proposed, the Opt Out request would become an option only after the Permittee has secured a state license to operate. Article 60 is an option to avoid expiration prior to securing the state license; dependent on the Permittee’s investment in the development of the approved land use operation. Without this progress toward operation of the permit, the Zoning Code states the permit will still expire after two years of nonuse.

Recommended Action: Staff requests approval of the draft Ordinance for first reading (to be read in title only), and advancement to a future agenda for second reading and possible adoption.