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(A) Adoption.
(1) City Council. Within the rules and regulations for permitting commercial cannabis businesses provided for in § 5.36.040, the City Council shall include procedures to govern the application process and the manner in which the decision will ultimately be made regarding the issuance of any commercial cannabis permit(s). For purposes of applications for storefront retailers and storefront retail microbusinesses, such procedures shall include detailed objective review criteria and a point system or equivalent evaluation scale tied to each set of review criteria.
(2) City Manager. As provided for in § 5.36.040, the City Manager shall be authorized to take any of the following actions, so long as they are consistent with the terms of this chapter and any rules and regulations adopted by the City Council: (a) prepare any necessary forms; (b) adopt any necessary rules, regulations, standards, policies and other requirements regarding applications; (c) solicit applications; (d) oversee the evaluation of the applicants; and (e) adopt any other rules, regulations, standards, policies and other requirements determined to be necessary to carry out the purposes of this chapter or any rules and regulations adopted by the City Council.
(B) Payment of application fee. At the time of filing, each applicant shall pay an application fee established by resolution of the City Council.
(C) Rejection of applications. Applications may be rejected due to untimely submission, failure to provide the required information or documentation, not being fully responsive to the requirements of the application process or the inclusion of any false, misleading or fraudulent statement in or the omission of any pertinent fact from the application or during the application process.
(Ord. 3321 § 3, 2020)
(A) Grounds for denial. An application for a commercial cannabis permit shall be denied if one or more of the following conditions exist:
(1) The applicant has not paid all fees required pursuant to this chapter.
(2) The application is incomplete, filed late, or is otherwise not responsive to the requirements of this chapter.
(3) The application contains a false or misleading statement or omission of a material fact.
(4) The applicant or any owner, officer or manager is not at least 21 years old.
(5) The applicant or any owner, officer or manager has unpaid and overdue administrative penalties imposed for violations of the Corona Municipal Code.
(6) The applicant or any owner, officer or manager has an unpaid civil judgment imposed for violation(s) of the Corona Municipal Code.
(7) The applicant or any owner, officer or manager has been convicted of any of the following charges:
(a) Any felony offense within the past ten years;
(b) A crime involving use of money to engage in criminal activity within the past ten years;
(c) Unlawful possession or use of a firearm within the past ten years; or
(d) Drug-related misdemeanor (other than cannabis) within the past three years.
(8) The applicant or any owner, officer or manager is on probation or parole for the sale of drugs (other than cannabis).
(9) The premises or the operation of the applicant's commercial cannabis business, as described in its application, would fail to comply with any provision of the Corona Municipal Code, or any state law or regulation.
(Ord. 3321 § 3, 2020)
(A) No physical modifications without approval. No permittee shall, without the prior written approval of the city, make a physical change, alteration, or modification to the premises that materially or substantially alters the premises or the use of the premises from the premises diagram and floorplan originally filed with the application for a commercial cannabis permit.
(B) Request for premises modification. A permittee who proposes to materially or substantially change, alter or modify the premises shall submit a request for premises modification to the city on a form issued or approved by the City Manager. The request for premises modification shall include a new premises diagram and floorplan that depicts the proposed changes, alterations or modifications to the premises and any other documentation requested by the city to evaluate the permittee's request. At the time of filing the request for premises modification, the permittee shall pay a fee in an amount established by resolution of the City Council.
(C) Material or substantial modifications. For purposes of this section, the following changes, alterations, or modifications to the premises shall be considered material or substantial:
(1) The removal, creation, or relocation of a common entryway, doorway, passage, or a means of public entry or exit, when such common entryway, doorway, or passage alters or changes limited-access areas within the premises;
(2) The removal, creation, or relocation of a wall or barrier;
(3) Changing the activities conducted in or the use of an area identified in the last premises diagram provided to and approved by the city; or
(4) Changes or alterations that violate any applicable provision of this code, the California Building Code or the California Fire Code.
(D) Building permits. Notwithstanding anything in this chapter to the contrary, a physical change, alteration, or modification to the premises shall be subject to all other requirements of this code, including, but not limited to the building permit requirements.
(Ord. 3321 § 3, 2020)
A commercial cannabis permit issued pursuant to this chapter shall expire one year after the date of issuance. No permit issued pursuant to this chapter shall confer any vested right to any person or business for more than the permit period. Commercial cannabis permits may be renewed pursuant to § 5.36.120.
(Ord. 3321 § 3, 2020)
(A) Renewal application. An application for renewal of a commercial cannabis permit shall be filed with the City Manager's office at least 60 days prior to the expiration date of the current commercial cannabis permit.
(B) Payment of fees. At the time of filing the application for renewal, the applicant shall pay a fee in an amount established by resolution of the City Council. Any applicant submitting an application less than 60 days before its expiration shall be required to pay a late renewal application fee, as established by resolution of the City Council.
(C) Application form. The application for renewal shall be submitted on a form issued or approved by the City Manager and shall contain all the information required for a new application for a commercial cannabis permit.
(D) Denial of renewal application. An application for renewal of a commercial cannabis permit may be denied if any of the following grounds exists:
(1) Any of the grounds for suspension or revocation under § 5.36.130.
(2) The commercial cannabis permit has been suspended or revoked at the time of the application for renewal.
(3) The commercial cannabis business has not been in regular and continuous operation in the four months prior to the renewal application.
(4) The permittee fails to or is unable to renew its state license.
(5) The permittee has made a false, misleading or fraudulent statement or omission of fact as to any information provided to city pursuant to this chapter.
(E) City Manager authority. The City Manager is authorized to make all decisions concerning the renewal of a commercial cannabis permit. In making the decision, the City Manager is authorized to impose additional conditions on the commercial cannabis permit if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare.
(F) Service of decision on permittee. The City Manager shall, either personally or by first class mail addressed to the address listed on the renewal application, serve the permittee with dated written notice of the City Manager's decision to approve or deny the renewal, and the right of the permittee to appeal the decision pursuant to Chapter 1.09 of this code.
(G) Validity of permit pending City Manager decision. If a permittee submits the required renewal application, but a written approval from the city has not been received prior to the expiration of the commercial cannabis permit, such permit shall be deemed conditionally renewed until service of the City Manager's written decision on the renewal application.
(H) Appeal right. The City Manager's decision on a renewal application may be appealed pursuant to Chapter 1.09 of this code.
(I) Effect of denial. If a renewal application is denied, the commercial cannabis permit shall no longer be effective and all related commercial cannabis activity must cease on or prior to the expiration date of the original commercial cannabis permit. A person denied a renewal of a commercial cannabis permit may file a new application pursuant to this chapter no sooner than one year from the date of the denial.
(Ord. 3321 § 3, 2020)
(A) Grounds for suspension or revocation. The City Manager may suspend, modify, further condition or revoke a commercial cannabis permit issued pursuant to this chapter for any of the following reasons:
(1) Failure of a permittee to comply with any requirement imposed by the provisions of this code (or successor provision or provisions) including any rule, regulation, condition or standard adopted pursuant to this chapter, or any term or condition imposed on the commercial cannabis permit, or any provision of the state cannabis laws, or any applicable local law or regulations. Any act or omission of any permittee representative constituting a violation of the provisions of this chapter shall be deemed the act or omission of the permittee for purposes of determining whether the commercial cannabis permit shall be suspended and/or revoked.
(2) Any change in the ownership of a commercial cannabis business that does not have city's prior written approval, to the extent required under this chapter.
(3) Revocation of a permittee's state license.
(4) Denying the city and/or its representatives access to the premises or records of a permittee.
(5) The conviction of permittee, or any permittee representative of the commercial cannabis business, of any of the following charges:
(a) Any felony offense within the past ten years;
(b) A crime involving use of money to engage in criminal activity within the past ten years;
(c) Unlawful possession or use of a firearm within the past ten years; or
(d) Drug-related misdemeanor (other than cannabis) within the past three years.
(6) The placement on probation or parole of permittee, or any permittee representative of the commercial cannabis business for the sale of drugs (other than cannabis).
(B) Notice to permittee. If the City Manager determines that a ground for suspension and/or revocation of a commercial cannabis permit exists, the City Manager shall give written notice of suspension and/or revocation to the permittee, either personally or by first class mail addressed to the address listed on the application. This notice shall state the reasons for the action, the effective date of the suspension and/or revocation, and the right of the permittee to appeal the decision pursuant to Chapter 1.09 of this code.
(Ord. 3321 § 3, 2020)
(A) Effect of state license suspension. Suspension of a state license shall immediately suspend the commercial cannabis permit and the ability of a commercial cannabis business to operate within the city, unless and until the State of California, or its respective department or division, reinstates or reissues the state license.
(B) Effect of state license revocation. Revocation or termination of a state license shall also immediately revoke or terminate the commercial cannabis permit and the ability of a permittee, or any permittee representative of a commercial cannabis business to operate a commercial cannabis business within the city, unless and until the State of California, or its respective department or division, reinstates or reissues the state license.
(Ord. 3321 § 3, 2020)
(A) Transfer of a permit prohibited. A commercial cannabis permit is valid only as to the permittee. No permittee is allowed to transfer its commercial cannabis permit to any person except pursuant to the terms of this section. Except as permitted, any such transfer or attempted transfer shall be deemed to constitute a voluntary surrender of the commercial cannabis permit and such commercial cannabis permit shall thereafter be null and void, except as set forth in this chapter.
(B) Transfer of less than majority ownership. A permittee may transfer less than 50% ownership or control of a commercial cannabis permit with prior written approval of the City Manager after submission of all required application materials, payment of applicable fees as established by resolution of City Council, and a determination that the transferee(s) satisfy(ies) the requirements of this chapter such as to be entitled to the issuance of an original commercial cannabis permit.
(C) Change in name or form of business entity. A permittee may change the name or form of business entity without applying to the City Manager for a new commercial cannabis permit if the ownership of the new business entity is the same as the original business entity. Although a new commercial cannabis permit is not required, the permittee shall notify the city in writing of the change within 30 days of the change, and obtain an amendment to the original commercial cannabis permit and the commercial cannabis operational agreement after paying the applicable fee established by resolution of the City Council.
(D) Involuntary transfer.
(1) In the event of the death, incapacity, receivership, assignment for the benefit of creditors or other event rendering one or more permittees incapable of performing the duties associated with the commercial cannabis permit, the permittee or permittee's successor in interest (e.g., appointed guardian, executor, administrator, receiver, trustee, or assignee) shall notify the City Manager in writing, within 14 calendar days of the occurrence of such event. To continue operations or cancel the existing commercial cannabis permit, permittee's successor in interest shall submit to the City Manager the following:
(a) The name of permittee's successor in interest;
(b) The name of the permittee(s) for which the successor in interest is succeeding;
(c) The phone number, mailing address, and email address of the successor in interest; and
(d) Documentation demonstrating that the permittee(s) is incapable of performing the duties associated with the commercial cannabis permit, such as a death certificate or a court order, and documentation demonstrating that the person making the request is the permittee's successor in interest such as a court order appointing guardianship, receivership, or a will or trust agreement.
(2) The City Manager may give the permittee's successor in interest written approval to continue operating the commercial cannabis business authorized by the commercial cannabis permit on the premises for a period of time specified by the City Manager, provided that the successor in interest shall be subject to all terms and conditions of the commercial cannabis permit, this chapter, any provision of the state cannabis laws, or any applicable local law or regulations, in the following instances:
(a) If the successor in interest or another person has applied for a commercial cannabis permit from the city for the premises and that application is under review;
(b) If the successor in interest needs additional time to destroy or sell cannabis; or
(c) At the discretion of the City Manager.
(E) No transfer for first 12 months. No permittee shall be allowed to transfer all or any portion of its commercial cannabis permit prior to 12 months after the permittee has opened and continuously operated its commercial cannabis business authorized thereunder.
(F) Commercial cannabis business name. 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 commercial cannabis permit.
(G) No transfer if permit suspended. A permit shall not be transferred pursuant to this section if the City Manager has notified the permittee that the commercial cannabis permit has been or may be suspended, revoked, or not renewed.
(H) No transfer of certificate of occupancy. A certificate of occupancy issued by the city's building division for a commercial cannabis business is valid only as to the permittee. No permittee is allowed to transfer the certificate of occupancy to any person. A new certificate of occupancy shall be required for any transfer or change otherwise permitted pursuant to this section that results in a change in the name of the permittee.
(I) Effect of failure to comply. Failure to comply with this section constitutes grounds for suspension or revocation of a commercial cannabis permit.
(J) No extension of permit. Any change or transfer permitted under this section shall not extend the term of a commercial cannabis permit.
(Ord. 3321 § 3, 2020)
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