A. No permittee shall transfer greater than fifty percent (50%) of 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 a commercial Cannabis Business Permit.
B. Any changes in ownership or control of greater than fifty percent (50%) of a commercial cannabis storefront retail permittee must be submitted to the City Council for review and approval.
C. No permittee may add a new owner of ten percent (10%) or more ownership interest unless the proposed new owner undergoes and passes a background check as provided for in this Chapter.
D. A permittee may change the form of business entity without applying to the City Council for a new Commercial Cannabis Business Permit, provided that one of the following applies:
1. The ownership of the new business entity is the same as the business entity that was issued the existing Commercial Cannabis Business Permit; or
2. The existing 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 existing permittee entity are the same as the new business entity.
E. Although a new Commercial Cannabis Business Permit is not required in the two circumstances listed in Subsection D. above, the permittee shall notify the City in writing of the change within fifteen (15) days of the change, and obtain an amendment to the existing Commercial Cannabis Business Permit after paying the fee set by resolution of the City Council.
F. The City Manager shall adopt a process (to include any necessary forms and procedures) for the change in ownership of any commercial cannabis business as set forth in this Section.
G. No permittee may avail themselves of the provisions of this Section if the City Manager or Permit Administrator has notified the permittee that the Commercial Cannabis Business Permit has been or may be suspended or revoked, or may not be renewed.
H. Failure to comply with this Section is grounds for revocation of a Commercial Cannabis Business Permit.
I. Any attempt to transfer a Commercial Cannabis Business 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 Commercial Cannabis Business Permit.
(Ord. No. 17-018 § 2 (part); Ord. No. 2017-020 § 2 (part); Ord. No. 2018-007 § 2 (part))