§ 35-4. Definitions.
Terms that are not defined in this chapter shall have the meanings ascribed to them in Section 26-02-140 (Definitions) of Chapter 26 of the Sonoma County code. The following words and phrases shall have the meanings set forth below when used in this chapter:
"Business" shall include all activities engaged in or caused to be engaged in within the unincorporated area of the county, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.
"Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, or any other strain or varietal of the genus Cannabis that may exist or hereafter be discovered or developed that has psychoactive or medicinal properties, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. "Cannabis" also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. For the purpose of this section, "cannabis" does not mean "industrial hemp" as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code. Cannabis is classified as an agricultural product separately from other agricultural crops.
"Cannabis cultivation area" means the total aggregate area(s) of cannabis cultivation on a single premise as measured around the outermost perimeter of each separate and discrete area of cannabis cultivation at the dripline of the canopy expected at maturity and includes, but is not limited to, the space between plants within the cultivation area, the exterior dimensions of garden beds, garden plots, hoop houses, green houses, and each room or area where cannabis plants are grown, as determined by the review authority.
"Cannabis product" means any product containing cannabis, including, but not limited to, flowers, buds, oils, tinctures, concentrates, extractions, and edibles intended to be sold for use by medical cannabis patients in California pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code. For the purposes of this chapter, medical cannabis does not include industrial hemp as defined by Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health and Safety Code.
"Commercial cannabis business" means any commercial business activity relating to cannabis, including but not limited to cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, and selling (wholesale and/or retail sales) of cannabis and any ancillary products and accessories in the unincorporated area of the county, whether or not carried on for gain or profit.
"Commercial cannabis business tax," "business tax," or "commercial cannabis tax" means the tax due pursuant to this chapter for engaging in commercial cannabis business in the unincorporated area of the county.
"Commercial cannabis cultivation" means cultivation conducted by, for, or as part of a commercial cannabis business.
"County permit" means a permit issued by the county to a person to authorize that person to operate or engage in a commercial cannabis business.
"Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. For purposes of this chapter, "cultivation" does not include a cannabis nursery.
"Delivery" means the commercial transfer of cannabis or cannabis products from a dispensary.
"Dispensary" means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including a person that delivers cannabis and cannabis products as part of a retail sale. Where a dispensary performs its functions through a technology platform of any type or character, the technology platform shall also be deemed a dispensary for purposes of this chapter, and shall have the same duties and liabilities as the principal. Compliance with the provisions of this chapter by either the principal or the technology platform shall, however, be considered compliance by both.
"Distributor" or "distribution" or "distribution facility" means a person involved in the procurement, sale, and/or transport of cannabis and cannabis products between two (2) or more cannabis businesses.
"Employee" means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation.
"Engaged in business" means the commencing, conducting, operating, managing or carrying on of a cannabis business and the exercise of corporate or franchise powers, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the unincorporated area of the county or coming into the unincorporated area of the county from an outside location to engage in such activities. A person shall be deemed engaged in business within the county if:
(1)
Such person or person's employee maintains a fixed place of business within unincorporated area of the county for the benefit or partial benefit of such person;
(2)
Such person or person's employee owns or leases real property within the unincorporated area of county for business purposes;
(3)
Such person or person's employee regularly maintains a stock of tangible personal property in the unincorporated area of county for sale in the ordinary course of business;
(4)
Such person or person's employee regularly conducts solicitation of business within the unincorporated area of county;
(5)
Such person or person's employee performs work or renders services in the unincorporated area of county; and
(6)
Such person or person's employee utilizes the streets within the unincorporated area of county in connection with the operation of motor vehicles for business purposes.
The foregoing specified activities shall not be a limitation on the meaning of "engaged in business."
"Evidence of doing business" means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the unincorporated area of county.
"Fiscal year" means July 1 through June 30 of the following calendar year.
"Greenhouse" means a permanent structure, including glasshouses, conservatories, hothouses, or similar structures for the covered propagation and growing of plants, constructed with a translucent roof and/or walls.
"Gross receipts," except as otherwise specifically provided, means the total amount actually received or receivable from all sales; the total amount or compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise; discounts, rents, royalties, fees, commissions, dividends, and gains realized from trading in stocks or bonds, however designated. Included in "gross receipts" shall be all receipts, cash, credits and property of any kind or nature, without any deduction there from on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever, except that the following shall be excluded therefrom:
(1)
Cash discounts where allowed and taken on sales;
(2)
Credit allowed on property accepted as part of the purchase price and which property may later be sold, at which time the sales price shall be included as gross receipts;
(3)
Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
(4)
Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;
(5)
Receipts from investments where the holder of the investment receives only interest and/or dividends, royalties, annuities and gains from the sale or exchange of stock or securities solely for a person's own account, not derived in the ordinary course of a business;
(6)
Receipts derived from the occasional sale of used, obsolete or surplus trade fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;
(7)
Cash value of sales, trades or transactions between departments or units of the same business;
(8)
Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered;
(9)
Transactions between a partnership and its partners;
(10)
Receipts from services or sales in transactions between affiliated corporations. An affiliated corporation is a corporation:
a.
The voting and non-voting stock of which is owned at least eighty percent (80%) by such other corporation with which such transaction is had; or
b.
Which owns at least eighty percent of the voting and non-voting stock of such other corporation; or
c.
At least eighty percent (80%) of the voting and non-voting stock of which is owned by a common parent corporation which also has such ownership of the corporation with which such transaction is had.
(11)
Transactions between a limited liability company and its member(s), provided the limited liability company has elected to file as a Subchapter K entity under the Internal Revenue Code and that such transaction(s) shall be treated the same as between a partnership and its partner(s) as specified in Subsection (9) above;
(12)
Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded when in excess of one dollar ($1.00);
(13)
Amounts collected for others where the business is acting as an agent or trustee and to the extent that such amounts are paid to those for whom collected. These agents or trustees must provide the finance department with the names and the addresses of the others and the amounts paid to them. This exclusion shall not apply to any fees, percentages, or other payments retained by the agent or trustees.
"Hoop house" means a temporary structure used for season extension or crop protection erected for less than one hundred eighty (180) days. Hoop houses do not include light deprivation, ventilation, artificial lighting, or any electrical components. The ends are left open and the material covering the structure is removable.
"Indoor" means indoor cultivation of cannabis within any type of structure using exclusively acritical lighting.
"Manufacturer" means a person that conducts the production, preparation, or compounding of manufactured cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
"Mixed-light" means cultivation of cannabis in a greenhouse or other similar structure using natural light, light deprivation, and/or any combination of natural and supplemental artificial lighting.
"Nursery" means a person that produces only clones, immature plants, and seeds used specifically for the planting propagation, and cultivation of cannabis.
"Outdoor" means cultivation of cannabis using no artificial lighting conducted in the ground or in containers.
"Person" means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, tribe or any other group or combination acting as a unit and includes the plural as well as the singular number.
"Personal cannabis cultivation" means cultivation within the residency, plant number, and/or square footage limitations provided in Chapter 26-88-258 exclusively for noncommercial.
"Sale" means and includes any sale, exchange, or barter.
"Square foot" or "square footage" means the maximum amount of cannabis cultivation area for commercial cannabis cultivation authorized by a county permit issued to a person engaging in commercial cannabis business, or by a state license in the absence of a county permit or license, not deducting for unutilized square footage, and shall be the basis for the tax base for cultivation.
"State" means the state of California.
"State license," "license," or "registration" means a state license issued pursuant to California Business & Professions Code Sections 19300, et seq. or other applicable state law.
"Testing laboratory" means a laboratory, facility, entity, or site in the state of California that offers or performs tests of cannabis or cannabis products, and that is accredited by an accrediting body independent from all other persons involved in commercial cannabis activity in the state, and holds a valid state license and a valid local license or permit.
"Transporter" means a person engaged in the transfer of cannabis or cannabis products from the business location of one (1) commercial cannabis business to the business location of another commercial cannabis business, for the purposes of conducting commercial cannabis activity.
"treasurer-tax collector" means the treasurer-tax collector of the county of Sonoma, his or her deputies or any other county officer charged with the administration of the provisions of this chapter.
(Ord. No. 6241 , § II(A), 8-28-2018; Ord. No. 6188 , § 4, 12-13-2016)