A. The following are grounds for revocation of a Commercial Cannabis Permit:
1. Failure of a permittee to comply with any requirement imposed by the provisions of this Code (or successor provision or provisions), including, but not limited to, any rule, regulation, condition or standard adopted pursuant to this chapter, or any term or condition imposed on the Commercial Cannabis Permit or entitlements or Use Permit, or any provision of State law.
2. Revocation of a State license issued under this chapter.
3. If the permittee, its owner(s), manager(s) or a responsible person has, within the past three (3) years, been sentenced or had a judgment issued in a criminal or civil court proceeding, and/or has been sanctioned or fined for, enjoined from, or found guilty of or plead guilty or no contest to a charge for engaging in a commercial cannabis activity in the State without the necessary permits and approvals from the applicable State and/or local jurisdictions; or has had a commercial cannabis license revoked or suspended by the applicable State and/or local jurisdictions.
4. Conviction within the past ten (10) years of the permittee, its owner(s) or manager(s), or a responsible person, including a plea of guilty or no contest, to any of the following offenses shall be grounds for revocation of a Commercial Cannabis Permit issued by the City:
i. A violent felony, as specified in Section 667.5(c) of the Penal Code.
ii. A serious felony, as specified in Section 1192.7(c) of the Penal Code.
iii. A felony involving fraud, deceit, or embezzlement.
iv. A felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.
v. A felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.
vi. A felony or misdemeanor involving the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance occurring after January 1, 2016.
5. If the permittee fails to satisfy all of the requirements set forth in Section 5.42.100B. within three years of the issuance of a Commercial Cannabis Permit or January 1, 2027, whichever occurs later.
B. If the City Manager determines that a ground for revocation of a Commercial Cannabis Permit exists, the City Manager shall serve written notice of revocation to the permittee or responsible person. The notice may be served on the recipient either personally or by certified first class mail to the address listed on the application. This notice shall state the reasons for the action, the effective date of the decision, the right of the permittee to appeal the decision to the City Council, or its appointed hearing officer or body, and that the City Manager’s decision will be final if no written appeal is timely submitted to, and received by, the City, pursuant to the provisions of this chapter.
C. This notice will be effective within ten (10) days from the date of service of the notice. To exercise the right to appeal, the permittee must file with the City Clerk a written basis for the appeal, including evidence relating to the grounds for revocation, and the applicable fee. The appeal will be heard by the City Council or its appointed hearing officer or body in accordance with Section 5.42.160. If no timely appeal is filed, the City Manager’s decision will be final 10 days after the date on the notice of revocation. If an appeal is timely and properly filed in accordance with this chapter, then the effective date of the notice is stayed until a decision after the hearing on the appeal is issued.
(Ord. 2552 §1, Ord. 2589 §2, Ord. 2598 § 1)