(a) No adult use cannabis operator shall operate in the City of Canton unless the entity possesses a valid local operating license pursuant to this chapter and a valid state certificate of operation from the Ohio Department of Commerce, except as otherwise provided in this Section.
(b) An adult use cannabis operator entity seeking to obtain a local operating license under this chapter must first apply for a local provisional license. An adult use cannabis operator may not receive a building permit or certificate of occupancy unless, at the time such documents are issued, the entity possesses a valid local provisional license.
(c) An application for a local provisional license shall be made to the License Technician and shall include:
(1) The legal name of the applicant.
(2) The type of business organization of the applicant, such as an individual corporation, partnership, limited liability company, association, cooperative, joint venture, or any other business organization.
(3) Confirmation that the applicant is registered with the Ohio Secretary of State as the type of business submitted pursuant to this rule, a certificate of good standing issued by the Ohio Secretary of State as the type of business submitted pursuant to this rule, a certificate of good standing issued by the Ohio Secretary of State, and a copy of the applicable business documents governing the operations and administration of the business.
(4) The mailing address, email address, and phone number of the applicant, if the applicant is an individual, or the name, mailing address, email address, and phone number of a designated representative of the applicant, if the applicant is not an individual.
(5) If the applicant is currently, was previously, or has applied to be licensed or authorized in another state or jurisdiction to cultivate, produce, test, dispense, or otherwise deal in the distribution of adult use cannabis in any form, the following:
A. A copy of each such licensing/authorizing document verifying licensure in that state or jurisdiction;
B. A statement granting permission to contact the regulatory agency that granted the license, accompanied by the contact information, to confirm the information contained in the application; and
C. If the applicant was ever warned, fined, denied, suspended, revoked or otherwise sanctioned, a copy of documentation so indicating, or a statement that the applicant was so licensed and was never warned, fined, denied, suspended, revoked or otherwise sanctioned. This includes notification of any pending proceedings regarding warnings, fines, denials, suspensions, revocations, or other sanctions.
(6) With respect to any person presently or previously associated with the applicant, any instance in which such person managed or served on the board of a business and was convicted, fined, censured, or had a registration or license suspended or revoked in any administrative or judicial proceeding in connection with such management or service, as well as information regarding the association between such person and the applicant;
(7) The proposed physical address of the applicant's adult use cannabis operator site and confirmation that the property is properly zoned for such use under the City's Planning and Zoning Code.
(8) A location area map of the area surrounding the proposed adult use cannabis operator site that establishes that the parcel of real estate on which the proposed facility will be located is at least five hundred (500) feet from the boundaries of a parcel of real estate having situated on it a prohibited facility, as measured under rule 3796:5-5-01 of the Ohio Administrative Code.
(9) Any other information requested by the License Clerk.
(10) Any other information required by Ohio Revised Code Chapter 3780, including but not limited to 3780.07 and 3780.11.
(11) A non-refundable application fee of five hundred dollars ($500.00).
(d) An application for a local provisional license shall be granted on the approval of the License Technician, except as otherwise provided in this Section. Within one year of receiving a local provisional license, an adult use cannabis operator may apply for a local operating license. If an adult use cannabis operator possessing a local provisional license has not applied for a local operating license within one (1) year, the local provisional license will expire and an adult use cannabis operator seeking a local operating license will need to first submit a new application for a local provisional license.
(e) An application for a local operating license shall be made to the License Technician and shall include:
(1) A copy of the provisional license application to the Ohio Department of Commerce under Chapter 3780 of the Ohio Revised Code.
(2) A copy of the provisional license granted by the Ohio Department of Commerce under Chapter 3780 of the Ohio Revised Code at the address at which the facility is to be located.
(3) Confirmation that the adult use cannabis operator is conforming to all requirements under this Chapter, Chapter 3780 of the Ohio Revised Code, and Chapter 3796 of the Ohio Administrative Code.
(4) Confirmation that the Canton Police Department has inspected the facility and approved the security arrangements.
(5) Any other information requested by the License Technician.
(6) A non-refundable application fee of five thousand dollars ($5,000.00).
(f) An application for a local operating license shall be granted on the approval of the License Technician, except as otherwise provided in this Section.
(g) Every local operating license issued by the City shall expire two (2) years after the date on which it was issued. A renewal application for an adult use cannabis operator shall be submitted to the License Technician at least ninety days prior to the expiration date of the local operating license. The renewal application shall include:
(1) Confirmation that the adult use cannabis operator is conforming to all requirements under this Chapter, Chapter 3780 of the Ohio Revised Code, and Chapter 3796 of the Ohio Administrative Code.
(2) A copy of a valid certificate of operation issued by the Ohio Department of Commerce to the adult use cannabis operator for the same address.
(3) Any other information requested by the License Technician.
(4) A non-refundable renewal fee of five thousand dollars ($5,000.00).
(h) An application for a renewal license shall be granted on the approval of the License Technician, except as otherwise provided in this Section.
(i) Both local provisional licenses and local operating licenses are only valid as to the particular address listed in the initial local provisional license application. An adult use cannabis operator entity which has obtained a local operating license may submit an application for a location change to the License Technician, which shall include:
(1) Confirmation that the adult use cannabis operator is conforming to all requirements under this Chapter, Chapter 3780 of the Ohio Revised Code, and Chapter 3796 of the Ohio Administrative Code.
(2) A copy of a valid certificate of operation issued by the Ohio Department of Commerce for the current address.
(3) The new proposed physical address of the applicant's adult use cannabis operator site and confirmation that the property is properly zoned for such use under the City's Planning and Zoning Code.
(4) A location area map of the area surrounding the newly proposed adult use cannabis operator location that establishes that the parcel of real estate on which the facility will be located is at least five hundred (500) feet from the boundaries of a parcel of real estate having situated on it a prohibited facility, as measured under rule 3796:5-5-01 of the Ohio Administrative Code.
(5) Any other information requested by the License Technician.
(6) A non-refundable application fee of five thousand dollars ($5,000.00).
(j) An application for a location change for a local operating license may be granted on the approval of the License Technician, except as otherwise provided in this Section. If approval for the location change is granted, a new local operating license will be issued.
(k) Both local provisional licenses and local operating licenses are only valid as to the particular adult use cannabis operator listed in the initial local provisional license application. If the ownership of an adult use cannabis entity changes, requiring a transfer of ownership application to the state of Ohio under Chapter 3796:2-l-08 of the Ohio Administrative Code, the adult use cannabis operator must notify the City. If the State of Ohio determines that the proposed ownership change complies with Chapter 3796:2-1-08, the ownership change will be permitted by the City under the existing local provisional license or local operating license. If the state of Ohio determines that a new state license application is required under Chapter 3976:2-l-08(B)(1)(d) of the Ohio Administrative Code, then the ownership change will not be permitted by the City without a new local provisional license and a new local operating license.
(l) As part of the submission of an application that results in the issuance of a local provisional license or local operating license, an adult use cannabis operator irrevocably consents to the following:
(1) Any inspection by the City of Canton or the Canton Police Department that is deemed necessary to ensure compliance by the adult use cannabis operator with this Chapter, Chapter 3780 and 3796 of the Ohio Revised Code, and Chapter 3796 of the Ohio Administrative Code. An inspection may be conducted with or without notice. During an inspection, a representative of the City of Canton or the Canton Police Department may:
A. Review and make copies of all records maintained in accordance with rules 3796:2-2-08, 3796:3-2-08, 3796:6-3-18, and 3796:4-2-09 of the Ohio Administrative Code;
B. Enter any area in the facility;
C. Inspect facility vehicles;
D. Review the policies and procedures of the adult use cannabis operator, including methods of operating;
E. Survey the premises and any off-site facilities;
F. Inspect all equipment, instruments, tools, materials, machinery, or any other resource used to cultivate, process, dispense, or test adult use cannabis;
G. Request access to locked areas in the facility;
H. Question licensed employees at the location; and
I. Obtain samples for testing of any adult use cannabis at the facility, media used to grow adult use cannabis, chemicals and ingredients used in the cultivation process, any labels or containers for marijuana, or any raw packaged adult use cannabis
(m) Notification.
(1) If, at any time, an adult use cannabis operator is subject to any enforcement action by the State of Ohio under Ohio Administrative Code Chapter 3796:5-6-01, or any code section, the adult use cannabis operator must immediately notify the City of Canton and provide any relevant information or documentation requested by the City.
(2) If, at any time, an adult use cannabis operator or an employee thereof has a reasonable belief that an actual loss, theft, or diversion of adult use cannabis or currency over one hundred dollars ($100.00) has occurred, the adult use cannabis operator must immediately notify the Canton Police Department, and such notification shall be provided no later than twenty-four (24) hours after discovery of the loss, theft, or diversion.
(3) If, at any time, any information in an adult use cannabis operator's local provisional license application changes, the adult use cannabis entity must immediately notify the City of Canton.
(n) If, at any time, the City becomes aware that an adult use cannabis operator possessing a local provisional license or a local operating license has engaged in, is engaged in, or is about to engage in any act or practice declared to be prohibited by this Chapter, Chapter 3780, Chapter 3796 of the Ohio Revised Code, Chapter 3796 of the Ohio Administrative Code, or any other local, state, or federal law, with the exception of acts that are permitted under state law but are federal law violations stemming from the classification of marijuana as a controlled substance under 21 U.S.C. §812(c), the Director of Public Safety may do any of the following:
(1) Refer such violations to the Ohio Department of Commerce;
(2) Issue a warning to the adult use cannabis operator, which may include possible corrective actions(s);
(3) Suspend the license and require any violations to be resolved and corrective actions to be taken as conditions to the reinstatement of the suspended license;
(4) Revoke the license.
(o) Notice.
(1) A warning, suspension, or revocation issued by the City under this section shall be served upon the adult use cannabis operator at the address for which a local provisional license and local operating license was granted, by personal service, or by certified and regular mail, or by posting in a conspicuous location.
(2) Notice by certified mail shall be effective upon delivery. In the event that notice by certified mail is returned unclaimed or refused, mailing of the notice by regular mail shall be deemed effective upon mailing. Notice by personal service or by posting shall be deemed effective at the time of personal service or posting, respectively.
(p) An adult use cannabis operator must immediately cease operations under suspension, revocation, or expiration of a local provisional license or local operating license, unless otherwise instructed by the City, until the suspension is lifted or a new, valid license is obtained.
(q) Suspension of Licenses.
(1) Suspension of licenses shall only be accomplished through the procedures outlined in this subsection. Suspension shall be accomplished after a public hearing is held thereon by the Safety Director, which hearing shall be held within thirty (30) days after notice is given to the licensee of such hearing, by certified mail and regular mail. The licensee shall have the right to appear at such a hearing, to be represented by counsel, and to have the right to examine and cross examine witnesses.
(2) Suspension may take place without a prior hearing if the Safety Director finds clear and convincing evidence that the continued distribution of adult use cannabis presents a danger of immediate and serious harm to others. Notice of the suspension shall be made as provided in this Section and a hearing on the merits of the suspension will take place within five days of the suspension.
(3) The suspension will remain in effect, unless lifted by the Safety Director, pending the results of the hearing. If the Safety Director does not issue an order within ninety (90) days after the hearing, the suspension shall be lifted on the ninety-first (91st) day following the hearing.
(4) As a condition of the reinstatement of a suspended license, the Safety Director may require any violations to be resolved and reasonable corrective actions to be taken.
(r) Revocation of Licenses.
(1) Revocation of licenses shall only be accomplished through the procedure outlined in this subsection. Revocation shall be accomplished only after a public hearing is held thereon by the Safety Director, which hearing shall be held within thirty (30) days after notice is given to the licensee of such hearing, by certified mail and regular mail. The licensee shall have the right to appear at such a hearing, to be represented by counsel, and to have the right to examine and cross examine witnesses.
(2) If an adult use cannabis operator local provisional license or local operating license is revoked, the adult use cannabis operator will coordinate with the City of Canton and the Ohio Department of Commerce in the closing of the facility as provided for in the Ohio Administrative Code.
(s) In the event a decision or ruling of the Safety Director is adverse to a licensee or license applicant regarding a denial, revocation of suspension of a license, the licensee or license applicant shall have the right to appeal such decision and ruling to the City of Canton License Appeals Board pursuant to the provisions of Chapter 149 of the Codified Ordinances of the City of Canton. The Mayor shall designate a hearing officer in the place of the Director of Public Safety.
(t) In the event a decision or ruling of the License Appeals Board is adverse to a licensee or license applicant regarding a denial, revocation, or suspension of a license, the licensee or license applicant shall have the right to appeal such decision and ruling to a court of competent jurisdiction, under authority of and pursuant to the provisions of Chapter 2506 of the Ohio Revised Code. A notice of appeal in such action shall be filed with the Office of the Law Director, as well as with the court to which the action is appealed, within appropriate time limits, as provided in Chapter 2505 of the Ohio Revised Code.
(u) The Safety Director shall have the authority to deny any application for a local provisional license, local operating license, license renewal, or a location change, at his/her discretion, pursuant to the criteria of this Chapter.
(Ord. 117-2024. Passed 6-17-24.)