5.61.170 - Changes in ownership of commercial cannabis business.

(a)

No permittee shall transfer ownership or control of a commercial cannabis business unless and until the proposed new owner submits all required application materials and pays all applicable fees, and independently meets the requirements of this chapter such as to be entitled to the issuance of an original commercial cannabis permit issued by the city council. A proposed agreement to be duly executed between the permittee and the proposed new owner must also be submitted wherein the permittee assigns all duties, responsibilities, waivers, and/or obligations of the executed development agreement to the proposed new owner, and the proposed new owner assumes same. Same shall be presented as a proposed amendment to the originally, executed development agreement.

(b)

A substantial change in the ownership of a permittee business entity (changes that result in a change of fifty-one percent or more of the original ownership), must be approved by the city council after completion of the application process under this chapter, including evaluation under any applicable review criteria used and relied upon during the original review and selection process.

(c)

A permittee may change the form of business entity without applying to the city council for a new commercial cannabis permit, provided that either:

(1)

The ownership of the new business entity is the same as the original permit holder business entity; or

(2)

If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA, provided that the board of directors (or in the case of an unincorporated association, the individual(s) listed on the city permit application) of the original permittee entity are the same as the new business entity.

(d)

Although a new commercial cannabis permit is not required in the two circumstances listed in this subsection (3), the permittee shall notify the city in writing of the change within ten calendar days of the change, and obtain an amendment to the original commercial cannabis permit and the executed development agreement after paying the fee set by resolution of the city council.

(e)

No permittee may avail themselves of the provisions of this section if the city administrator, or his or her designee, has notified the permittee that the commercial cannabis permit has been or may be suspended, revoked, or not renewed.

(f)

Failure to comply with this section is grounds for revocation of a commercial cannabis permit, and/or grounds to issue a notice to cure, pursuant to the provisions of the corresponding development agreement.

(g)

Any attempt to transfer a commercial cannabis 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. 700, § 2, 9-4-2018)