9.10.070 Commercial cannabis operator permit application procedures and requirements.
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 or any subsequent application period established by the city manager except as otherwise prohibited by this chapter.
B. Application Submittal Time Frame. A person may only submit one application per permit type, per application period, for a commercial cannabis operator permit, during the annual application period designated by resolution of the city council or any subsequent application period established by the city manager. An applicant who is unsuccessful in any application period may submit another application in any subsequent application period, except as otherwise prohibited by this chapter. The commercial cannabis operator permit will be valid for twelve months. Once a permit is activated, 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, including the property owner of record, has been convicted of a felony or offense referenced in Business and Professions Code Section 26057, or of any other crime related to the application for or operation of a cannabis business; 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 for any other criminal misconduct related to the application for or operation of a cannabis business; or has been disqualified from obtaining or has had a commercial cannabis license suspended or revoked by the state of California or any city or county in any state for misconduct related to a cannabis business. The foregoing restrictions shall apply within the five years preceding the date the application is filed, and for any additional period of time during which an applicant 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, disqualification, suspension or revocation of a cannabis permit or license, may be engaged (actively or passively) in the application for, or operation, management or ownership of, any commercial cannabis business or leasing of any real property to 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. The foregoing shall result in immediate notice of automatic disqualification of the application, and/or revocation of any permit issued to the applicant, as the result of the misleading statements or omissions.
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 twenty-four months of issuance. The permit is activated by the issuance of a use permit for the commercial cannabis activity pursuant to Chapter 17.86, 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. In the event that a permit holder fails to timely activate the permit and the permit lapses, the cannabis business shall be required to submit a new application, unless otherwise prohibited from doing so under this chapter. (Ord. 1728 § 1 (Exh. A), 2023; Ord. 1722 § 2, 2022; Ord. 1673 §§ 1, 2 (Exh. A), 2020; Ord. 1647 § 4 (Exh. A (part)), 2018)