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A. To the fullest extent permitted by local, state and/or federal law, the City of Chico shall not assume any liability whatsoever with respect to having issued a Commercial Cannabis Permit pursuant to this chapter, or otherwise approving the operation of any commercial cannabis business.
B. As a condition to the approval of any Commercial Cannabis Permit, Conditional Use Permit, and any other agreement, permit, or license between the City and applicant, the applicant shall meet the following conditions prior to issuance of the Commercial Cannabis Permit:
1. It must execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend at the applicant’s sole cost and expense, and hold harmless the City of Chico, and its officers, officials, employees, representatives, and agents from any and all claims, losses, damages, injuries, liabilities or losses which arise out of their license, permit, or other entitlement to operate a commercial cannabis business related to:
i. The City’s drafting, adoption and passage of local ordinances, and related resolutions, policies, rules and regulations, allowing for commercial cannabis businesses and/or, if necessary in the future, making any zoning law amendment(s);
ii. The City’s issuance of the Commercial Cannabis Permit;
iii. The City’s approval and execution of a land use entitlement and/or Conditional Use Permit;
iv. The City’s decision to approve the operation of the commercial cannabis business or activity;
v. The process used by the City in making its decision to issue, approve or deny a permit, or handle any appeal of any issuance, approval or denial of a permit; and/or
vi. The alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents.
2. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City’s Risk Manager.
3. Reimburse the City of Chico for all costs and expenses, including but not limited to attorney fees and costs and court costs, which the City of Chico may be required to pay as a result of any legal challenge related to the City’s approval of the applicant’s Commercial Cannabis Permit, or related to the City’s approval of the applicant’s commercial cannabis activity, or the City’s approval of a Use Permit. The City of Chico may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.
C. The terms and provisions as enumerated in this section related to indemnification and limitation on the City’s liability shall be an explicit term of a Commercial Cannabis Permit and if applicable as a condition in the Use Permit, that an applicant and a permittee shall agree to in order for same to be valid.
(Ord. 2552 §1, Ord. 2589 §2)
A. Commercial Cannabis Permits issued under this chapter are valid only as to the approved permittee at the specified approved location, and is therefore nontransferable to other persons, entities, projects or locations, without the filing of a new or amended application.
B. No Commercial Cannabis Permit may be sold, transferred or assigned by a permittee, or by operation of law, to any other person, persons, or entities, unless a written amendment is made consistent with this chapter, Codified Resolution 5R.42 and Chapter 19. Any such sale, transfer, or assignment, or attempted sale, transfer, or assignment inconsistent with these requirements shall be deemed to constitute a voluntary surrender of such permit and such permit shall thereafter be null and void, except as set forth in this chapter, or unless a written amendment to the Commercial Cannabis Permit, and where applicable the Use Permit, is ultimately approved.
(Ord. 2552 §1, Ord. 2589 §2)
A. No permittee may operate at a location different from the location approved and specified in the Commercial Cannabis Permit and entitlements (e.g., use permit) until such change of location is approved and a new Commercial Cannabis Permit or land use entitlement is issued for that location. Operating at a location different from the location approved and specified in the Commercial Cannabis Permit and entitlements in violation of this section shall be grounds for revocation of the permit.
B. For commercial cannabis permits where entitlements are issued by the City Council or Planning Commission, no permittee shall change the location of the commercial cannabis business specified in the Commercial Cannabis Permit and entitlements until any such change of location is approved by the approving body and such decision becomes final.
C. For all other Commercial Cannabis Permit, no permittee shall change the location of the commercial cannabis business specified in the Commercial Cannabis Permit and entitlements until any such change of location is approved by the City Manager. Prior to such decision, City Manager shall consult with the Police, Fire, Community Development and Public Works Departments.
D. The change of location of a commercial cannabis businesses shall meet all the requirements under this chapter, including but not limited to:
1. The permittee shall submit a change of location application to the City at least sixty (60) calendar days prior to the proposed change. Additional time may be necessary for processing by the City based on land use entitlements and staff workload.
2. The proposed location shall meet all the requirements under this Code, including but not limited to this chapter and the Chico Zoning Ordinance.
3. The proposed location may be reviewed and evaluated using the same review criteria as used and relied upon under the initial application process.
4. For relocation of a permittee’s commercial cannabis business issued by the City Council, such relocation application shall be subject to the prior review and approval by the Planning Commission and/or City Council at a public meeting, as appropriate for amending the applicable entitlements.
5. No later than twenty-one (21) days prior to any public meeting required under this section, the permittee shall give notice to all property owners and occupants located within five hundred (500) feet of the proposed premises of the proposed relocation of any commercial cannabis business.
(Ord. 2552 §1, Ord. 2589 §2)
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. Prior to approval of such transfer, the City Manager shall consult with the Police, Fire, Community Development and Public Works Departments.
B. 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 within the entitlements to the proposed new owner, and the proposed new owner assumes same. Same shall be presented as a proposed amendment to the originally, executed entitlements.
C. In the event of a substantial change in the ownership of a permittee business entity (changes that result in a change of fifty-one (51) percent or more of the original ownership), each new owner must be approved by the City Council after completion of a new or amended application process which may include evaluation under any applicable review criteria used and relied upon during the original review and selection process.
D. 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.
E. Although a new Commercial Cannabis Permit is not required in the two circumstances listed in this subsection D., the permittee shall notify the City in writing of the change within ten (10) calendar days of the change, and obtain an amendment to the original Commercial Cannabis Permit. Such change may require amendment to associated entitlements, which shall be reviewed upon receipt of such notice.
F. No permittee may avail themselves of the provisions of this section if the City Manager, or their designee, has notified the permittee that the Commercial Cannabis Permit has been or may be suspended, revoked, or is not being/has not been renewed.
G. 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 Use Permit.
H. 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. 2552 §1, Ord. 2589 §2)
A. One or more proposed partners in a partnership granted a Commercial Cannabis Permit may make application to the City Manager, together with the fee established by the City Council, to amend the original application, providing all information as required for partners in the first instance and, upon approval thereof, the transfer of the interests of one or more partners to the proposed partner or partners may occur. If the permittee is a partnership and one or more of the partners should die, one or more of the surviving partners may acquire, by purchase or otherwise, the interest of the deceased partner or partners without effecting a surrender or termination of such permit. In such circumstance, the Commercial Cannabis Permit, upon notification to the City Manager, shall be placed in the name of the surviving partners upon proof of acquisition by the remaining partner(s) of the decedent’s interest. Prior to such action becoming final, City Manager shall consult with the Police, Fire, Community Development and Public Works Departments.
B. If the Commercial Cannabis Permit is issued to a corporation, stock may be sold, transferred, issued, or assigned to stockholders who have been named on the application regardless of the percentage of stock held by such person at the time of application. A person not listed on the application as a stockholder may acquire less than fifty (50) percent in a corporation without necessitating an application for amendment of Commercial Cannabis Permit due to change of ownership. If a person not listed on the application as a stockholder at any time acquires more than fifty (50) percent of the aggregate stock in a corporation, an amendment to the Commercial Cannabis Permit indicating the new ownership structure shall be obtained from the City. In the event that more than fifty (50) percent of the aggregate stock in a corporation is acquired by one person, without an amendment to the Commercial Cannabis Permit being obtained from the City, the permit shall be deemed terminated and void; provided, however, the proposed stock purchaser transferee may submit to the City Manager, together with the fee established by the City Council, an application to amend the original application providing all information as required for stockholders in the first instance under this chapter, and, upon approval thereof, the transfer may then occur.
C. All changes in ownership as described in this section must be submitted to the City within thirty (30) calendar days, along with any organizational documents reflecting said changes. Furthermore, said corresponding amendments to the corresponding executed entitlements must also be made, and reviewed and approved as addressed in the entitlements, or as required by the City’s policy concerning amendments to such entitlements. Failure to submit changes in ownership in violation of this section is grounds for revocation of the permit.
(Ord. 2552 §1, Ord. 2589 §2)
A. No permittee shall operate, conduct, manage, engage in, or carry on the business of a commercial cannabis business under any name other than the name of the commercial cannabis business specified in the permit.
B. The permittee shall advise the City Manager at least fifteen (15) calendar days prior of all changes of name or designation under which the business is to be conducted. The change of name or designation shall be accompanied by a non-refundable fee established by resolution of the City Council to defray the costs of reissuance of the Commercial Cannabis Permit, and to make any amendments to the corresponding executed entitlements in the new business name.
C. Said change in name must also be made in the form of an amendment to the corresponding executed entitlements, and reviewed and approved as outlined in the entitlements, or as required by the City’s policy concerning amendments to such entitlements.
(Ord. 2552 §1, Ord. 2589 §2)
A. No alterations to an approved facility may be undertaken without approval of the City Manager for businesses allowed by right under Title 19.
B. No alterations to an approved facility may be undertaken at a business issued a use permit or other entitlement issued as a discretionary approval (i.e., by Planning Commission or City Council) without approval of the issuing body.
C. The City Manager or their designee shall review proposed alterations to an approved facility to determine if such alterations are material to the permits, licenses, and entitlements issued for the facility. In the event that such alterations are material changes to the permits, licenses, and entitlements, such proposed alterations shall be considered by the person or body or bodies issuing the permits, license and entitlements. Material changes shall include, but not be limited to, increased square footage of interior space, decreased parking, decreased accessibility, changes to the security plan, and alteration of a previously submitted floorplan.
D. All required City approvals, plan approvals, and permits must be obtained before causing, allowing, or permitting alterations to, and/or extensions or expansions of, the existing building(s), structure(s), or portions thereof, approved as a location for a commercial cannabis business. Said alterations, extensions, or expansions shall comply with all applicable state and local laws, regulations and standards, including those concerning building and fire safety, as well as occupancy.
E. Undertaking alterations to an approved facility without appropriate approval in violation of this section shall be grounds for revocation of the permit.
(Ord. 2552 §1, Ord. 2589 §2)
A. Permittee shall notify the City on a form approved by the City Manager within fifteen (15) calendar days of any other change in the information provided in the application form or any change in status of compliance with the provisions of this chapter or resolutions or the Chico Zoning Ordinance relating to commercial cannabis businesses, including any change in the commercial cannabis business form of ownership or management members.
B. Such form shall be submitted along with a permit and appropriate fee, as adopted by Resolution of the City Council.
C. Any changes in the information provided by permittee in the Commercial Cannabis Permit application form, or any change in status of compliance in regard to the provisions of this chapter or Chapter 19.75 of the Chico Municipal Code, including any change in the commercial cannabis business form of ownership or management members without compliance with this section shall be grounds for revocation of the permit.
(Ord. 2552 §1, Ord. 2589 §2)
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