(a)   Grounds for Denial.
      (1)   The City Cannabis Coordinator shall reject any application that does not meet the requirements of the MRTMA or this chapter. The City Cannabis Coordinator shall reject any application that contains any misrepresentation or omission of any material fact (materiality as determined by the City), or false or misleading information, or the applicant has provided the City with any other false or misleading information related to the marihuana establishment.
      (2)   An applicant is ineligible to receive a permit under this chapter if any of the following circumstances exist regarding the applicant or an applicant's affiliate (as defined by the MRTMA):
         A.   Prior conviction under the laws of this state, any other state, or the United States that involved distribution of a controlled substance to a minor.
         B.   Any person required to be named on the permit application is convicted of a crime which, if it had occurred prior to submittal of the application, could have been cause for denial of the permit application.
         C.   The applicant has knowingly submitted an application for a permit that contains false, misleading or fraudulent information, or who has intentionally omitted pertinent information on the application for a license.
         D.   Is an employee, advisor, or consultant of the agency involved in the implementation, administration, or enforcement of the Act or the Rules.
         E.   The applicant fails to provide and maintain adequate premises liability and casualty insurance for its proposed marihuana establishment.
         F.   Holds an elective office of a governmental unit of this state, another state, or the federal government; is a member of or employed by a regulatory body of a governmental unit in this state, another state, or the federal government; or is employed by a governmental unit of this state. This subdivision does not apply to an elected officer of or employee of a federally recognized Indian tribe or to an elected precinct delegate.
         G.   The applicant fails to meet other criteria established by state-issued rule.
      (3)   In determining whether to grant an AUME permit to an applicant, the City may also consider all of the following:
         A.   Whether the applicant or anyone who will have ownership in the marihuana establishment has a pattern of convictions involving dishonesty, theft, or fraud that indicate the proposed marihuana establishment is unlikely to be operated with honesty and integrity.
         B.   Whether the applicant has a history of noncompliance with any regulatory requirements, all legal judgments, lawsuits, legal proceedings, charges, or government investigations, whether initiated, pending, or concluded, against the applicant, that are related to business operations, including, but not limited to fraud, environmental, food safety, labor, employment, worker's compensation, discrimination, and tax laws and regulations, in this state or any other jurisdiction.
         C.   Whether the applicant meets the other standards in rules applicable to the state license category and standards, requirements in this chapter, as well as compliance with other applicable city ordinances.
   (b)   AUME Permit Forfeiture. In the event that a marihuana establishment does not commence operations within one year of issuance of a City AUME permit, the AUME permit shall be deemed forfeited; the business may not commence operations and the permit is not eligible for renewal.
   (c)   AUME Permit as Revocable Privilege. An AUME permit granted by this chapter is a revocable privilege granted by the City and is not a property right. Granting an AUME permit does not create or vest any right, title, or other property interest. Each AUME permit is exclusive to the permittee, and a permittee or any other person must apply for and receive the City's approval before a permit is transferred, sold, or purchased. An AUME permittee or any other person shall not lease, pledge, or borrow or loan money against an AUME permit. The attempted transfer, sale or other conveyance of an interest in a license without prior agency approval is grounds for suspension or revocation of the AUME permit or for other sanction considered appropriate by the City.
   (d)   Nonrenewal, Suspension, or Revocation of AUME Permit.
      (1)   The City Manager may, after notice, suspend, revoke or refuse to renew an AUME permit for any of the following reasons:
         A.   The applicant or permittee, or their agent, manager or employee, has violated, does not meet, or has failed to comply with any of the terms, requirements, conditions or provisions of this chapter or with any applicable state or local law, regulation or rule;
         B.   The applicant or permittee, or their agent, manager or employee, has failed to comply with any special terms or conditions of its permit and/or license pursuant to an order of the state or local permitting authority, including those terms and conditions that were established at the time of issuance of the license and those imposed as a result of any disciplinary proceedings held subsequent to the date of issuance of the permit;
         C.   The City, the County, or any other governmental entity with jurisdiction, has closed the marihuana establishment temporarily or permanently or has issued any sanction for failure to comply with the health and safety provisions of this chapter or other applicable state or local laws related to public health and safety;
         D.   The marihuana establishment is determined by the City to have become a public nuisance pursuant to Chapter 662 Public Nuisance Abatement of these City Ordinances or other applicable state nuisance law;
         E.   The marihuana establishment's state operating license has been suspended or revoked; or
         F.   The marihuana commercial entity has been operated in a manner that adversely affects the public health, safety or welfare.
      (2)   Evidence to support a finding under this section may include, without limitation, a continuing pattern of conduct, a continuing pattern or drug-related criminal conduct within the premises of the marihuana commercial entity or in the immediate area surrounding such business, a continuing pattern of criminal conduct directly related to or arising from the operation of the marihuana commercial entity, or an ongoing nuisance condition emanating from or caused by the marihuana commercial entity. Criminal conduct considered shall be limited to the violation of a state law or regulation or City ordinance.
      (3)   In addition to the basis for revocation and/or suspension in subsection (d)(1) above, the City Manager may revoke a permit for cause in accordance with Section 802.17 .
   (e)   Any person whose permit is denied, revoked or suspended shall be entitled to a hearing in accordance with Section 802.16 .
(Ord. 14-2019. Passed 10-15-19; Ord. 11-2022. Passed 11-1-22; Ord. 11-2023. Passed 10-17-23.)