Section:
5R.42.010 Purpose.
5R.42.020 Application Review, Scoring and Selection Process
5R.42.030 Phase I (Competitive and Non-Competitive Permits): Determination of Eligibility.
5R.42.040 Phase II-A (Competitive Permits): Criteria Evaluation and Scoring.
5R.42.050 Phase III (Competitive Permits): City Manager’s Hearing.
5R.42.055 Phase IV (Competitive Permits): Final Selection by City Manager.
5R.42.060 Phase II (Non-Competitive Permits): Criteria Evaluation and Recommendation.
5R.42.065 Phase III (Non-Competitive Permits): Final Review by City Manager and Awarding of Permit.
5R.42.070 Permit is Not a Land Use Approval or an Entitlement.
5R.42.080 Denial and Reapplication.
5R.42.090 Permit Fee Required.
5R.42.100 Permit Application Procedure.
5R.42.130 Renewal Applications.
This chapter is adopted pursuant to the provisions of Chapter 5.42 of the Chico Municipal Code which authorizes the establishment and regulation of commercial cannabis businesses within the City.
(Res. No. 45-20 §1 (part), Ord. 2589 §3)
A. The review of Commercial Cannabis Permits in the City of Chico shall take two forms:
(1) Competitive Permit: Review, scoring and selection of applications for those permits with limited number to be issued, which are submitted timely and complete, shall be comprised of four (4) phases:
Phase I: Determination of Eligibility (Application Submittal Requirements)
Phase II: Criteria Evaluation and Scoring
A. Application Review and Ranking
B. Interviews and Ranking
Phase III: City Manager Hearing
Phase IV: Final Selection by City Manager and Confirmation of Permit
(2) Non-Competitive Permit: Review, scoring and selection of applications for those permits without a limited number to be issued will be conducted in three (3) phases:
Phase I: Determination of Eligibility (Application Submittal Requirements)
Phase II: Criteria Evaluation and Recommendation
Phase III: Final Review by City Manager and Awarding of Permit
B. A complete description of the merit-based system and all merit-based considerations shall be included with the application forms.
C. The City Manager, or their designee, may promulgate additional rules or policies to establish supplemental or more detailed scoring categories, with respective scoring points, under any one or all of the criteria listed herein above, prior to the commencement of the City accepting any applications.
D. To the extent criminal background checks are not able to be completed during Phase I, they will be completed prior to the issuance of a permit.
E. The City Manager shall appoint staff or other designee to review all application documents required in the city’s Phase I and Phase II processes. Such staff or designee shall review each application package and the background check of all applicants and owners, and shall individually score each application in accordance with the scoring system established herein by the City Council.
F. The most qualified applicants who are eligible to operate a Retail Storefront cannabis business in the City during Phase II will be recommended to the City Manager for a final determination at a public administrative decision hearing at a date and time set by the City Manager. The number of applicants of competitive permits allowed to process for consideration of zoning clearance shall not exceed the number of available Retail Storefront cannabis business permits than available. However, the City reserves the right to award a lesser number of cannabis business permits than there are applicants, or to award no permits at all.
G. An applicant who is deemed most qualified during Phase II is not guaranteed any particular result in the application process, nor in any zoning review process.
H. Notice of the results of Phase II will be provided in writing to each applicant and they will be notified whether they will be moving forward in the application process.
I. The City Manager or their designee(s) shall process applications to ensure compliance with any or all of the phases of the application review process for competitive licenses and non- competitive licenses as set forth in this Chapter.
J. Notwithstanding anything in this Chapter to the contrary, the City reserves the right to reject any or all applications for competitive licenses, at any time during the application process if it determines it would be in the best interest of the City, taking into account the health, safety and welfare of the community.
(Res. No. 45-20 §1 (part), Ord. 2589 §3)
A. Phase I: Determination of Eligibility (Application Submittal Requirements)
(1) During Phase I, each applicant interested in operating a commercial cannabis business will pay a deposit fee in an amount established by the City Council by resolution. The deposit will be the amount anticipated to cover the cost of developing and administering the application process. However, should the City determine that additional cost is necessary each Applicant shall be requested to pay an additional amount to cover the costs of administering the application process. Applications shall be complete to be considered, and applications will only be complete if they include all information required by this application, and are presented in the required form, and submitted before the deadline.
(2) Each owner will undergo a criminal background check, as determined by the City Manager or the Chico Police Department and the State of California, demonstrating compliance with the eligibility requirements, the AUMA, the MAUCRSA, state regulations, and other requirements contained in this Chapter. The background check may include a Live Scan review for both the state and federal clearance but not limited to this condition. In the event of delays, which may occur in processing the Live Scan, each owner may be subject to a provisional background check at which time they will be required to sign a background check authorization allowing the City to conduct a third-party background check.
(3) The initial period to accept competitive applications shall be forty-five (45) calendar days from the date the applications are released. Should the 45th day fall on a day when city hall is closed, the application period shall be extended to the next open day at 4:00 p.m. Following the application period, the City shall stop accepting applications and shall review all applications received. The City reserves the right to suspend/close/ modify the period of accepting non-competitive application based on number of applications received and availability of staff to process such applications. Staff shall provide at least 15 days’ notice of suspension of application period and reopening of such period for noncompetitive permits.
(4) The City Manager or their designee(s) will review applications to determine completeness, compliance with the minimum application submittal requirements, and to determine whether any application should be denied based on matters appearing on the face of the application.
(5) Failure to be responsive and/or provide substantive responses, or to provide applicable supporting documentation as required by the application, may disqualify the applicant from being eligible for Phase II of the application process. Applications shall be reviewed regarding grounds for revocation of permits under Chico Municipal Code Section 5.42.150. Applications found to have violations providing grounds for revocation shall not be forwarded to Phase II.
(Res. No. 45-20 §1 (part), Ord. 2589 §3)
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