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9.10.070 Commercial cannabis operator permit application procedures and requirements.
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A. Application. A person shall apply for a commercial cannabis operator permit by submitting an application to the city during the annual application period. The city council will, by resolution, adopt criteria by which all applications will be reviewed, applicants qualified and, in the case of retail and cultivation businesses, also ranked. Those applicants that are selected will have the opportunity to apply for a use permit as outlined in Section 17.86.080. Each application shall designate at least one responsible party. If a person is not selected to receive a commercial cannabis operator permit, the person may reapply during the next annual application period.

B. Application Submittal Timeframe. A person may only submit one application for a commercial cannabis operator permit during the annual application period designated by resolution of the city council. The commercial cannabis operator permit will be valid for twelve months. Once a permit is obtained, the applicant can apply annually for renewal. There is no guarantee that an applicant will receive a commercial cannabis operator permit in the first instance. Due to limitations on the number of certain permits, even a highly ranked applicant for a retail or cultivation permit may not receive a commercial cannabis operator permit and even an applicant who receives a commercial cannabis operator permit is not guaranteed that any subsequent, required land use permit, as outlined in Section 17.86.080, will be approved.

C. Grounds for Automatic Disqualification. In addition to any other reason that may be established by the city council as a basis for disqualification, an applicant shall be disqualified from applying for, or obtaining, a commercial cannabis operator permit if:

1. The applicant fails to timely file an application during the annual application period.

2. The responsible party refuses to sign the application and agree to be personally responsible for compliance, and personally liable for failure to comply, with the provisions of this chapter.

3. The applicant, or any of its officers, directors or owners, or any person listed in the application, has been convicted of a felony or offense referenced in Business and Professions Code Section 26057; or has been subject to fines, penalties, or sanctions for cultivation or production of a controlled substance on public or private lands or for unauthorized commercial cannabis activities as specified in Business and Professions Code Section 26057; or has had a commercial cannabis license suspended or revoked by the state of California or any city or county in any state, within the three years preceding the date the application is filed, or is ineligible to apply for a state cannabis license. No person who has been convicted of such a felony or offense, or subject to such fines, penalties, sanctions, suspension or revocation, may be engaged (actively or passively) in the operation, management or ownership of any commercial cannabis business. A conviction within the meaning of this chapter means a plea or verdict of guilty or a conviction or diversion following a plea of nolo contendere.

4. The applicant made one or more false or misleading statements or omissions in the application process.

5. Any person listed on the application is a licensed physician making patient recommendations for medical or medicinal cannabis pursuant to state law.

6. Any person listed in the application is less than twenty-one years of age.

D. Duration and Activation of Permit. Each commercial cannabis operator permit issued pursuant to this chapter shall expire twelve months after the date of its activation. The permittee may apply for renewal prior to expiration in accordance with this chapter. Each commercial cannabis operator permit must be activated within twelve months of issuance. The permit is activated by the issuance of a use permit for the commercial cannabis activity pursuant to Section 17.86.080, together with all other applicable city permits and state licenses, and the commercial cannabis operator thereafter opening and continuously operating the commercial cannabis activity. Failure to timely activate the permit shall be deemed abandonment of the permit and the permit shall automatically lapse. (Ord. 1647 § 4 (Exh. A (part)), 2018)