California City Municipal Code Art. 5 Application for Cannabis Business Permit: Renewal Applications; and Effect…

(a) The City Council shall adopt by resolution the procedures which will govern the application process, and the manner in which the decision will ultimately be made regarding the issuance of any cannabis business permit(s). The City Manager will prepare the necessary forms, adopt any necessary rules, regulations and processes, solicit applications, and conduct evaluations of the applicants.

(b) At the time of filing, each applicant shall pay an application fee established by resolution of the City Council, to cover all costs incurred by the City in the application process. An application shall not be deemed complete, and will not be processed, until the designated application fees have been paid. Once submitted, all fees shall be non-refundable.

(c) After the initial review the City Manager will issue permits for all cannabis businesses except for dispensaries. For cannabis dispensary permits, the City Manager will make a recommendation to the City Council, and the City Council shall make a final determination in accordance with Article 7.

(d) The City's Reservation of Rights: The City reserves the right to reject any or all applications. The City may also modify, postpone, or cancel any request for applications, or the entire program under this Chapter, at any time without liability, obligation, or commitment to any party, firm, or organization. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Chapter, may be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application. In addition to any other appropriate reasons for rejection, including but not limited to a failure to comply with any requirement of any State or local law, rule or regulation, an application RISKS BEING REJECTED for any of the following reasons:

(1) Proposal not containing the required elements, exhibits, nor organized in the required format.

(2) Proposal considered not fully responsive to this request for permit application.

( Ord. No. 18-766, § 2, 8-28-2018 )

Each cannabis business permit issued pursuant to this Chapter shall expire twelve (12) months after the date of its issuance. Cannabis Business permits may be renewed as provided in Section 5-6.504.

( Ord. No. 18-766, § 2, 8-28-2018 )

Cannabis Business permits may be revoked for any violation of any law and/or any rule, regulation and/or standard adopted pursuant to this Chapter.

( Ord. No. 18-766, § 2, 8-28-2018 )

(a) An application for renewal of a cannabis business permit shall be filed at least sixty (60) calendar days prior to the expiration date of the current permit.

(b) The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Chapter. Once submitted to the City all fees shall be non-refundable.

(c) An application for renewal of a cannabis business permit shall be rejected if any of the following exists:

(1) The application is filed less than sixty (60) days before its expiration, unless good cause is shown for failure to timely apply as approved in the sole discretion of the City Manager.

(2) The cannabis business permit is suspended or revoked at the time of the application.

(3) The cannabis business has not been in regular and continuous operation in the four (4) months prior to the renewal application.

(4) The cannabis business has failed to conform to the requirements of this Chapter, or of any regulations adopted pursuant to this Chapter.

(5) The permittee fails or is unable to renew its State of California license.

(6) If the City or state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of this Chapter, of the City's Municipal Code, or of the state rules and regulations, or of any term or condition of the permit, and the City or state has determined that the violation is grounds for termination or revocation of the cannabis business permit.

(d) The City Manager or his designee is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager or his designee is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with newly adopted, repealed, or amended state or local laws and regulations, preserve the public health, safety or welfare. Appeals from the decision of the City Manager or his designee shall be handled pursuant to Article 6 of this Chapter.

(e) If a renewal application is rejected, a person may file a new application pursuant to this Chapter no sooner than one (1) year from the date of the rejection.

( Ord. No. 18-766, § 2, 8-28-2018 )

Suspension of a 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 City, until the State of California, or its respective department or division, reinstates or reissues the 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 City of California City.

( Ord. No. 18-766, § 2, 8-28-2018 )

(a) No person shall operate a cannabis business at any location other than the location specifically authorized and identified on the City issued cannabis business permit. A permittee may request that the specifically authorized location identified on the City issued cannabis business permit be changed to another specifically authorized location that meets all zoning requirements, including but not limited to distances, for identified uses without the need to reapply for a new permit. The City Manager is authorized to make the final decision concerning the issuance of a change in location and reissue of the cannabis business permit for the new location.

(b) Cannabis business permits issued through the grant of a transfer shall be valid for a period of one (1) year beginning on the day the City Manager approves the transfer of the permit. Before the transferee's permit expires, the transferee shall apply for a renewal permit in the manner required by this chapter.

(c) Changes in ownership of a permittee's business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than 75% of the original ownership), must be approved by the City Council and executed by the City Manager through the transfer process set forth in this section. Failure to comply with this provision is grounds for permit revocation.

(d) A permittee may change the form of business entity without applying to the City Manager for a transfer of permit, provided that either:

1. The membership of the new business entity is substantially similar to original permit holder business entity (at least 75% of the membership is identical), or

2. If the original permittee is a cooperative or collective and then transitions to a new business entity to comply with Section 5-6.301, subdivision (b), provided that the original operator(s) of the original permittee business are the same, and the only change is removing collective/cooperative members from the ownership of the new business entity.

Although a transfer is not required in these two circumstances, the permit holder is required to notify the City Manager in writing of the change within ten (10) days of the change. Failure to comply with this provision is grounds for permit revocation.

(e) No cannabis business permit may be transferred when the City Manager or Police Chief has notified the permittee that the permit has been or may be suspended or revoked.

(f) Any attempt to transfer a cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such a purported transfer shall be deemed a ground for revocation of the permit.

( Ord. No. 18-766, § 2, 8-28-2018 )