Oakley adjusted its cannabis regulations this week to make clear fines and rules for administrative hearings.
Earlier this spring, the City Council unanimously passed rules increasing fines for unlicensed industrial cannabis activity to as much as $1,000 per violation or as much as $10,000 per day. Previously, the town could impose fines of $100, $200 or $500 for violations; there was no upper limit.
But on Tuesday, the council unanimously passed a brand new ordinance clarifying that separate administrative penalties will probably be imposed for every marijuana plant grown illegally outdoors or indoors that features greater than the six plants allowed by state law.
New rules also make clear that a property owner has the correct to appeal a citation to a county clerk and potentially be given time to rectify the situation. To avoid the fines, the property owner would must prove that the tenant possessed illegal cannabis, the lease didn’t allow industrial cannabis cultivation, and the property owner didn’t know that the tenant was engaging in illegal cannabis activity.
If all three conditions should not met, the fines would remain in place, the staff report states.
However, City Councilor George Fuller said it was the responsibility of the property owner to look out for such illegal activities.
“I don't let landowners get away with not knowing that cannabis is being grown in their greenhouse,” he said. “I think it's their responsibility to pay attention. There are many signs – increased electricity use, increased water use. Nobody comes in the house. It's papered over.”
According to staff, when the constructing inspector finds a violation on a property, property owners receive a notice within the mail that will include a citation. If the notice comes back, further steps are taken to search out the owner. Once found, a hearing is scheduled and the executive law judge determines how much time the owner has to repair the issue.
City Councilman Aaron Meadows, who works in real estate, said property managers cannot simply go into people's homes to see if there is illegitimate cultivation or anything.
“We have no right to do that,” he said.
Under California law, property owners and tenants have obligations to one another, and people obligations are “clearly written and regulated” and the town doesn’t interfere with those regulations, noted City Attorney Derek Cole.
“Our hearing officer will expect the landlord to present some facts (to avoid a subpoena),” he said. “But I think all of your concerns – all of you – have some very good arguments. I think the draft ordinance takes that into account and gives us flexibility.”
California Assembly Bill 1684, which took effect on January 1, allows municipalities to impose higher fines on each the property and every of its owners and to categorise the unauthorized business as a public nuisance.
Under the brand new state regulations, fines could be imposed for any unlicensed industrial cannabis activities, including cultivation, manufacturing, processing, distribution or retail sale of cannabis products.
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