(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)