Long Beach Municipal Code Div. II Administration

A. The City Manager may delegate an act required to be performed pursuant to this Chapter to any Code Enforcement Officer or Official of the City, including, without limitation, the Chief of Police, the Fire Code Official, the Building Official, the Director of Financial Management, the City Attorney, the City Health Officer, or any designee of such officers or officials. All references to the City Manager in this Chapter shall include any designee of the City Manager.

B. The City Manager has all the powers of any peace officer to:

1. Investigate violations or suspected violations of this Chapter; Chapter 3.80, Chapter 5.90, and Title 21 of this Code; the provisions of MAUCRSA; any regulations implemented and enforced by the State or any of its departments or divisions that may be enforced by peace officers; any other laws or regulations pertaining to Commercial Cannabis Businesses in this City, any resolutions or regulations promulgated pursuant to such provisions;

2. View, duplicate, and/or take possession of recordings made by the digital video surveillance system of a Commercial Cannabis Business, which shall be made available to the City Manager upon verbal request. No search warrant, court order, or subpoena shall be needed for the City Manager to view security records;

3. Enter the cannabis facility and premises of a Commercial Cannabis Business from time to time unannounced to make reasonable inspections to observe and enforce compliance with this Chapter and all laws and regulations of the City and State;

4. Serve all warrants, summonses, subpoenas, administrative citations, notices, or other processes relating to the enforcement of laws regulating commercial cannabis activities and Commercial Cannabis Businesses;

5. Assist or aid any law enforcement officer in the performance of his or her duties upon such law enforcement officer's request, or the request of other local officials that have jurisdiction;

6. Inspect, examine, or investigate any Commercial Cannabis Business, and the premises and/or cannabis facility for the same, where cannabis goods are grown, harvested, possessed, stored, cultivated, processed, manufactured, packaged, labeled, transported from, tested, distributed, sold, or made available, and any books and records in any way connected with any permitted activity;

7. Require any Commercial Cannabis Business, upon demand, to allow an inspection of any Commercial Cannabis Business during business hours, or at any time of apparent business, including, without limitation, any cannabis equipment, cannabis accessories, security records, inventory, on-site operations specific to the Commercial Cannabis Business, accounts, or books and records; and to permit the testing of, or examination of, cannabis goods;

8. Require applicants to submit complete and current applications, fees, and any other information the City Manager deems necessary to make permitting decisions and to approve material changes made by any applicant or Commercial Cannabis Business;

9. Conduct investigations into the character, criminal history, and all other relevant factors related to suitability of all applicants for a Commercial Cannabis Business Permit, and such other persons with a direct or indirect interest in a Commercial Cannabis Business, as the City Manager may require; and

10. Promulgate such administrative regulations as deemed necessary and appropriate, if said regulations are consistent herewith and with all applicable State law and regulations;

11. Exercise any other power or duty authorized by law.

C. Nothing in this Section is intended to, or shall operate to, change or shall have the effect of changing, the status of a City Manager's designee under this Section from a public or miscellaneous officer or employee to an individual peace officer or safety member or to a class of peace officer or safety member for purposes of retirement, worker's compensation or similar injury or death benefits, or any other employee benefit or benefits to which said officer or employee would not have been entitled to as a public employee prior to the adoption of this Section.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

To prevent destruction of evidence, diversion, or other threats to public safety, while permitting a Commercial Cannabis Business to retain its inventory pending further investigation, the City Manager may order an administrative hold of cannabis goods pursuant to the following procedure:

A. If during an investigation or inspection of a Commercial Cannabis Business, the City Manager develops reasonable grounds to believe certain cannabis goods constitute evidence of acts in violation of this Chapter, or rules promulgated pursuant to it, or otherwise constitute a threat to the public safety, the City Manager may issue a notice of administrative hold of any such cannabis goods.

B. The notice of administrative hold shall provide a documented description of the cannabis goods to be subject to the administrative hold.

C. The Commercial Cannabis Business shall completely and physically segregate the cannabis goods subject to the administrative hold in a separate area of the location under investigation, where it shall be safeguarded by the Commercial Cannabis Business. Pending the outcome of the investigation and any related disciplinary proceeding, the Commercial Cannabis Business is prohibited from selling, giving away, transferring, transporting, or destroying the cannabis goods subject to the administrative hold.

D. Following an investigation, the City Manager may lift the administrative hold, order the continuation of the administrative hold, or seek a Final Order for the destruction of the cannabis goods. A Commercial Cannabis Business shall be responsible for the cost of the destruction of cannabis associated with its violation.

E. Any decision or action of the City Manager pursuant to this subsection is subject to the appeal procedures pursuant to Section 5.92.1445.

F. Voluntary surrender of cannabis goods. The Commercial Cannabis Business, prior to a Final Order and upon mutual agreement with the City Manager, may elect to waive a right to a hearing and any associated rights, and voluntarily surrender any goods to the City Manager. Such voluntary surrender may require destruction of any cannabis goods in the presence of the City Manager.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. The City Manager is authorized to make reasonable rules, policies, and procedures consistent with the intent and spirit of this Chapter as may be necessary to administer and enforce the provisions of this Chapter and any other ordinances, regulations or laws relating to and affecting the permitting and operations of Commercial Cannabis Businesses. Regulations promulgated by the City Manager become effective upon date of publication, unless specified otherwise.

B. Applicants and permittees shall cooperate with the City Manager, including City Manager designees who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this Chapter.

C. It is unlawful for any person to obstruct, impede, or interfere with the City Manager, from reasonable inspection, investigation, audits authorized by law or from exercising their respective duties under the provisions of this Chapter and all rules promulgated pursuant to it, including but not limited to, the following:

1. Threatening force or violence against the City Manager, or otherwise endeavoring to intimidate, obstruct, or impede the City Manager or any peace officers from exercising their duties. The term "threatening force" includes the threat of bodily harm to such individual or to a member of his or her family;

2. Denying the City Manager access to any portion of a Commercial Cannabis Business, premises, and/or cannabis facility during business hours or times of apparent activity;

3. Providing false or misleading statements;

4. Providing false or misleading documents and records;

5. Failing to timely produce requested books and records required to be maintained by the Commercial Cannabis Business; or

6. Failing to timely respond to any request for information made by the City Manager about an investigation of the qualifications, conduct, or compliance of a Commercial Cannabis Business or applicants.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

The Director of Financial Management is authorized to make reasonable rules, policies, and procedures consistent with the intent and spirit of this Chapter concerning the applications, the application process, the information required of applicants, the application procedures, and the administration and procedures to be used and followed in the application process for permit applications and requests for permit changes or modifications required pursuant to this Chapter.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. It is unlawful for any person to engage in, operate, conduct, carry on, or allow to be carried on, the business of adult-use cannabis in the City without having first met the following requirements:

1. The person has paid any business license tax pursuant to Chapter 3.80 of this Code;

2. The person holds a valid permit pursuant to the requirements of this Chapter; and

3. The person holds a State license in accordance with California Business and Professions Code Section 26000 et seq. and any applicable regulations implemented by the State or any of its departments or divisions.

B. Each permit issued pursuant to the requirements of this Chapter shall entitle the holder thereof to obtain a City license to engage in the business described in the permit, upon payment of the license tax required by the provisions of Chapter 3.80 of this Code, provided the holder of the permit complies with all other applicable provisions of law or ordinance.

C. Fixed location required. A permit may only be issued for a specific, fixed location within a secured, fully enclosed building, that is subject to building and/or zoning permits and regulations.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. Any person seeking an Adult-Use Cannabis Business Permit shall submit a written application to the City, signed under penalty of perjury, using the form approved by the City for that purpose and in the manner required by the Director of Financial Management. The application shall be accompanied by a non-refundable application fee, established by resolution of the City Council. All applications shall contain, at a minimum, the following information and documents unless otherwise specified by the Director of Financial Management:

1. Applicant information.

a. The legal business name of the applicant.

b. The applicant's mailing address, e-mail address, and business telephone number.

c. The federal employer identification number or social security number of the applicant.

d. A description of the business organizational structure of the applicant, including the entity identification number, if applicable.

e. The contact information for the Community Liaison, including the Liaison's full name, phone number, and e-mail address.

f. Other cannabis licenses. A list of all State licenses and any out-of-state or other local licenses, permits, or authorizations to conduct commercial cannabis activity held by the applicant, including the date the license was issued and the state license number.

g. Description of State licenses required. A description or identification of the State license(s) types that are required for the applicant's proposed operations.

h. Prior denials, suspensions, or revocations. A statement under penalty of perjury by the applicant, as to whether the applicant has ever had the right to conduct a commercial cannabis activity denied, suspended, or revoked by the City, State, or any other cannabis licensing authority, including out-of-state licensing authorities.

2. Owner information. Every application shall include the following information for every owner of the applicant's Adult-Use Cannabis Business:

a. The full legal name, title, social security number or individual taxpayer identification number, mailing address, e-mail address, telephone number, and percentage of ownership in the Adult-Use Cannabis Business.

b. A copy of a completed Live Scan fingerprinting and criminal background check form, identifying the Long Beach Police Department as the requesting agency; and

c. A color copy of every owner's government-issued identification.

3. Property information. Every application shall include, but not be limited to, the following property information concerning the proposed premises:

a. The physical address of the premises to be permitted;

b. A premises diagram;

c. The full legal name, e-mail address, and telephone number of the property owner for the proposed premises; and

d. Proof that the applicant has the legal right to occupy and use the premises for commercial cannabis activity, subject to the following requirements:

(i) If the Adult-Use Cannabis Business owns the real property where the commercial cannabis activity will occur, the applicant shall provide properly executed deeds or other proof of title to said real property.

(ii) If the Adult-Use Cannabis Business does not own the real property where the commercial cannabis activity will occur, the applicant shall provide the following:

1. A written statement, on a form provided by the City for that purpose, signed and notarized by each property owner under penalty of perjury, consenting and/or attesting to the following:

a. That commercial cannabis activity may be conducted on the property by the Adult-Use Cannabis Business applicant;

b. That the Adult-Use Cannabis Business applicant has the right to occupy the property;

c. That no person shall engage in commercial cannabis activity on the proposed premises without all licenses and permits required by this Code and State law to conduct commercial cannabis activity while a Commercial Cannabis Business application is pending;

d. That the City may enter the property to conduct property inspections during the application process and after a permit is issued; and

e. That each property owner has read, understands, and will ensure compliance with the terms of this Chapter.

2. A copy of the Property Owner's Non-Residential Rental Business License.

4. Details of business operation. Every application shall include details of the proposed operation, including but not limited to: the proposed hours of operation; a description of the nature of the proposed commercial cannabis activity; whether any other type of commercial cannabis activity will share the proposed premises or cannabis facility with the proposed operation; and all specifications for any equipment to be required for the proposed operation.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. Upon receipt of a complete application, the Director of Financial Management shall refer the application to the appropriate City departments to determine whether the proposed premises and cannabis facility complies with all applicable laws and regulations.

B. As part of the application process, every Adult-Use Cannabis Business shall be subject to mandatory inspections of the proposed premises.

C. All applicants shall obtain all required land use approvals, and any other necessary approvals, certifications, permits, or licenses from the City, State, or any applicable State or local agencies, for each separate proposed premises and for every type of commercial cannabis activity required for the applicant's proposed operation.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

The City may allow a Commercial Cannabis Business to conduct both adult-use and medicinal commercial cannabis activity on the same permitted premises if all of the following criteria are met:

A. The permittee holds both an Adult-Use Cannabis Business Permit and a Medical Marijuana Business Permit on the same premises for an identical type of commercial cannabis activity.

B. Except as otherwise authorized by law, the permittee only conducts one of the following types of commercial cannabis activities on the same permitted premises: retail sale (Dispensary), cultivation, distribution, manufacturing, or laboratory testing. Examples of exceptions authorized by law include, but are not limited to, businesses holding a State license for a Type 12 Microbusiness or Transport Only Distributors that hold a State license and City permit for cultivation or manufacturing.

C. Prior to the issuance of an Adult-Use Cannabis Business Permit, the applicant shall waive the rights to the inspection, penalty, suspension, revocation, and appeals process and requirements under Chapter 5.90 of this Code, and shall consent to subject the Medical Marijuana Business Permit to the inspection, penalty, suspension, revocation, and appeals processes and requirements of this Chapter.

D. The application for an Adult-Use Cannabis Business Permit shall be submitted by the same entity and owners that hold the Medical Marijuana Business Permit, or the same entity and owners who are named on the application for the Medical Marijuana Business Permit, for the identical premises as the Medical Marijuana Business.

E. The operation of adult-use and medicinal commercial cannabis activities from the same permitted premises complies with the requirements in this Chapter and all other applicable State and local laws and regulations, including, but not limited to, the location requirements specified in Section 5.92.420.

F. If the Commercial Cannabis Business is a Dispensary, the proposed Adult-Use Cannabis Dispensary shall also be a permitted Medical Marijuana Dispensary in good standing.

G. The Medical Marijuana Business Permit shall be issued before the Adult-Use Cannabis Business Permit will be issued.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

Editor's note— ORD-22-0015 § 4, 2022, deleted §§ 5.92.230 and 5.92.235 which pertained to the conversion to an adult-use, co-located cannabis business or to a co-located dispensary, and derived from ORD-18-0015 § 6(Exh. F), of 2018.

Possession of other types of local and State licenses or permits does not exempt any person from the requirement of obtaining a permit under this Chapter.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. Upon review of an application, if the Director of Financial Management determines an application is incomplete, the Director of Financial Management shall provide notice to the applicant, who shall have ninety (90) calendar days to correct all deficiencies.

B. If the applicant fails to correct said deficiencies within the ninety (90) day period, the application shall be deemed abandoned, void, and of no further force and effect. The applicant may reapply at any time following an abandoned application. The City will not refund any fees for incomplete or abandoned applications.

C. The Director of Financial Management may extend the deadline upon showing of good cause by the applicant for the inability to provide all required information by the deadline, if a written request for an extension is received no later than ten (10) calendar days prior to the deadline. For purposes of this subsection, the term "good cause" shall mean the applicant's failure to complete the application process occurred due to circumstances outside of the applicant's control.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. The Director of Financial Management shall only accept applications from one (1) applicant per property address at a time.

B. Any applications received by the Director of Financial Management from a different applicant, while an active application is pending for the same property address, is deemed void and of no force and effect.

C. If more than one (1) application for an Adult-Use Cannabis Business Permit has been submitted for the same property address, the first application received by the Director of Financial Management shall be eligible to proceed.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. An applicant may withdraw an application any time prior to the issuance or denial of a permit by submitting a signed and dated request to withdraw, on a form provided by the City for that purpose.

B. Upon the Director of Financial Management's receipt of the request to withdraw, the application is deemed withdrawn, void, and of no further force and effect.

C. Withdrawal of an application submitted under this Chapter does not deprive the Director of Financial Management of his or her authority to institute or continue any proceeding against the applicant for the denial of an application for a permit upon any ground provided by law or to enter an order denying an application for a permit upon any such ground.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A permit issued by the City is a revocable privilege. It is the responsibility of the applicant to provide all information required for approval of the permit and to demonstrate compliance with this Chapter and any other applicable law, rule, or regulation.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. It shall be unlawful for any of the following persons to be an owner of an Adult-Use Cannabis Business pursuant to this Chapter:

1. A sheriff deputy, police officer, or prosecuting officer, or an officer or employee of the State, County, or the City.

2. A person otherwise prohibited in this Chapter from engaging in commercial cannabis activity.

3. A licensed physician making patient recommendations for cannabis.

4. An individual who is under twenty-one (21) years of age.

5. A person who has been convicted of any offense within the last ten (10) years that is substantially related to the qualifications, functions, or duties of the operation of a Commercial Cannabis Business and conducting commercial cannabis activity, which includes the following offenses:

a. A violent felony, as specified under Penal Code Section 667.5(c).

b. A serious felony, as specified under Penal Code Section 1192.7(c).

c. A felony involving fraud, deceit, or embezzlement.

6. A person who has been convicted of any offense that is substantially related to the qualifications, functions, or duties of the operation of a Commercial Cannabis Business and conducting commercial cannabis activity, which includes the following offenses:

a. A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.

b. A felony conviction for drug trafficking with enhancements pursuant to California Health and Safety Code Section 11370.4 or 11379.8.

7. Any person who has failed to remedy any outstanding delinquent taxes, fees, or judgment owed to the City.

8. A person who has, within the past (3) years, been sanctioned or fined for, enjoined from, found guilty of, or plead guilty or no contest to, any charge of engaging in commercial cannabis activity without the required permits, licenses, registrations, or approvals required by State or local law.

B. Conviction for any controlled substance felony after the issuance of an Adult-Use Cannabis Business Permit shall be grounds for revocation of said permit or denial of the renewal of said permit.

C. A plea or verdict of guilty, or a conviction following a plea of nolo contendere is deemed a conviction within the meaning of this Chapter.

D. Except as provided for in Section 5.92.265.A.6 and Section 5.92.1615.B.4.a, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of cannabis and/or cannabis goods shall not be the sole ground for denial of a permit.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

To the fullest extent permitted by law, the City will not assume any liability whatsoever with respect to issuing any permit pursuant to this Chapter or otherwise approving the operation of any Adult-Use Cannabis Business or Co-Located Cannabis Business. Prior to issuance of an Adult-Use Cannabis Business Permit, the applicant, or its legal representative, shall execute an agreement, on a form approved by the City Attorney, regarding the following:

A. The applicant will indemnify, defend (at applicant's sole cost and expense), and hold harmless the City, and its officers, officials, employees, representatives, and agents from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City's issuance of the Adult-Use Cannabis Business Permit, the City's decision to approve the applicant's operation of any commercial cannabis activity or any Commercial Cannabis Business operation, the process used by the City in making its decision, or the alleged violation of any federal, State, or local laws by the Adult-Use Cannabis Business applicant, permittee, or any of its officers, managers, employees, or agents; and

B. The applicant will agree to reimburse the City for all costs and expenses, including but not limited to attorney fees and costs, which the City may be required to pay as a result of any legal challenge related to the City's approval of the applicant's Adult-Use Cannabis Business Permit, or related to the City's approval of the applicant's commercial cannabis activity. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. No person may commence or continue any adult-use commercial cannabis activity in the City, without timely paying in full all fees and taxes required for the operation of an Adult-Use Cannabis Business.

B. The actual cost to the City arising from the processing and oversight of permits, business permits and licenses, and the costs of monitoring and ensuring compliance with this Chapter, including the Equity Program, the Responsible Vendor Pilot Program, investigations, enforcement actions, and disciplinary or abatement proceedings, shall be offset through application fees, and annual renewal fees, and shall be established by resolution of the City Council which may be amended from time to time.

C. The amount of any fee, cost, or charge imposed pursuant to this Chapter shall be deemed a debt to the City that is recoverable in any manner authorized by this Code, State law, or in any court of competent jurisdiction.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. All permits issued under the provisions of this Chapter shall be effective for a period not to exceed five (5) years after issuance. The City Manager may renew a permit if the City Manager determines that the permittee has complied with the provisions of this Chapter and all applicable laws during the preceding permit term, and if the permittee pays the renewal fees and taxes required by this Chapter.

B. Any permit issued under this Chapter does not confer a vested right or entitlement to receive a future permit under this Chapter.

C. Any permit issued under this Chapter does not authorize any conduct or continuance of any operation of a Commercial Cannabis Business, in the event a permittee fails to provide required business tax returns and taxes to the City.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. Form and fees required. Any permit changes or modifications made pursuant to this Subdivision shall be submitted on a form, provided by the City for that purpose, with a nonrefundable fee established by resolution of the City Council.

B. No permittee may avail themselves of the provisions of this Subdivision if the Director of Financial Management has notified the permittee that the Adult-Use Cannabis Business Permit or Co-Located Cannabis Business Permits have been, or may be, suspended or revoked, or may not be renewed.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. Any relocation or expansion of the permitted premises that includes a different property address is considered a change of address.

B. No permittee shall operate an Adult-Use Cannabis Business or Co-Located Cannabis Business at any premises other than the premises specified in the permittee's permit(s).

C. The relocation of any Adult-Use Cannabis Business shall first be approved by the Director of Financial Management who shall determine whether all ordinances and regulations of the City will be complied with at any proposed new premises.

D. Only permittees may request to relocate an Adult-Use Cannabis Business operation to a new premises. Applicants seeking to relocate shall withdraw their existing application and submit a new application for the new proposed premises pursuant to the requirements of this Chapter.

E. The Director of Financial Management may approve a permittee's request to relocate the operation of an Adult-Use Cannabis Business if the relocation complies with the following requirements:

1. The permittee, and any owners identified in the permit, and the commercial cannabis activity specified in the existing permit remain unchanged if the request to relocate is approved.

2. The existing Adult-Use Cannabis Business Permit, and the corresponding State license, shall not be the subject of a pending revocation or suspension action by the City, State, or any of the State's divisions or departments.

3. If the permittee is a Dispensary, both the Medical Marijuana Dispensary and the Adult-Use Cannabis Dispensary shall relocate to the same premises at the same time. It shall be unlawful for a Co-Located Dispensary to relocate the operation of either the Adult-Use Cannabis Dispensary or the Medical Marijuana Dispensary without likewise changing the location of the other.

4. The proposed premises complies with the requirements in this Chapter and all other applicable State and local laws and regulations, including, but not limited to, the locations requirements specified in Section 5.92.420.

F. A Non-Equity Dispensary shall not be eligible to submit a request to relocate the operation of the Adult-Use Cannabis Dispensary until one hundred eighty (180) days after the City begins accepting business license applications from Equity Dispensaries, or until all Equity Dispensaries have provided the complete, notarized Property Owner Authorization for the business premises in the business license application, whichever occurs sooner.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. Except as otherwise set forth in this Chapter, any sale, transfer, assignment, attempted sale, attempted transfer, or attempted assignment of a permit in violation of this Chapter shall be deemed to constitute a voluntary surrender of such permit, and all rights to operate a Commercial Cannabis Business in the City shall terminate, and any such permit(s) shall thereafter be deemed null and void.

B. No permittee may sell, transfer, or assign, or change ownership or control of an Adult-Use Cannabis Business Permit to another person, or by operation of law, unless and until the proposed new owner(s), or the proposed transferee(s), submit all required materials at least thirty (30) days prior to the change of ownership or transfer, pay all applicable fees, and independently meet the requirements of this Chapter. For purposes of this Chapter:

1. A change in ownership occurs when one (1) or more of the owners of a permit change and the new person added to the permit meets the definition of an "Owner" pursuant to this Chapter.

2. A change in ownership does not occur when one (1) or more owners leave the business by transferring their ownership interest to the other existing owner(s). In cases where one (1) or more owners leave the business by transferring their ownership interest to the other existing owner(s), the owner(s) that are transferring their interest shall provide a signed statement to the City confirming that they have transferred their interest.

C. If the permittee is a Co-Located Cannabis Business, any request to change ownership, or transfer a permit, shall not be approved unless both the Medical Marijuana Business and the Adult-Use Cannabis Business changes permit ownership at the same time, to the same owners, same business name, and in the same business formation. It shall be unlawful for a Co-located Commercial Cannabis Business to change ownership of either the Medical Marijuana Business Permit or the Adult-Use Cannabis Business Permit without likewise changing the ownership of the other.

D. The existing permittee may conduct business under the existing permit while the Director of Financial Management reviews the application for a change of ownership or permit transfer. Denial of an application for a change of ownership does not result in the revocation of the existing permit.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

No permittee shall operate, conduct, manage, engage in, or carry on an Adult-Use Cannabis Business under any name other than the name of the Adult-Use Cannabis Business specified in the permit and/or any "doing business as" or "DBA" provided in the permit application.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)

A. A permittee shall not make a physical change, alteration, or modification of the permitted premises without the prior written approval of the Director of Financial Management.

B. If a permitted premises is to be changed, modified, or altered, the permittee is responsible for filing a request for a premises modification with the Director of Financial Management and securing all necessary City approvals, project plan approvals, and permits.

C. Alterations or modifications requiring City approval include, without limitation:

1. The removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway, or passage alters or changes the limited-access areas within the permitted premises.

2. The removal, creation, addition, or relocation of the cultivation area.

3. Any other physical modification resulting in a material or substantial change in the mode or character of business operation.

4. The requirements of this Section are in addition to compliance with any other applicable State or local rule, law, or regulation pertaining to approval of building modifications, zoning, or land use requirements.

D. The Director of Financial Management may refer the plans and specifications to all concerned City departments for review and inspection, as appropriate.

(ORD-22-0015 § 4, 2022; ORD-18-0015 § 6(Exh. F), 2018)