5.42.260   Change in ownership when the permittee is a partnership or corporation.
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)