(a) No medical marijuana entity shall operate in the City, unless the entity possesses a valid local operating license pursuant to this chapter and a valid State certificate of operation from the Ohio Department of Commerce, except as otherwise provided in this section.
(b) A medical marijuana entity seeking to obtain a local operating license under this chapter must first apply for a local provisional license. A medical marijuana entity may not receive a building permit or certificate of occupancy unless, at the time such documents are issued, the entity possesses a valid local provisional license.
(c) An application for a local provisional license shall be made to the license technician and shall include:
(1) The legal name of the applicant;
(2) The type of business organization of the applicant;
(3) Confirmation in the form of a certificate of good standing from the Ohio Secretary of State that the applicant is registered with the Ohio Secretary of State as the type of business submitted pursuant to this section (if applicable);
(4) A copy of the business operating agreement, partnership agreement, or code of regulations (if applicable);
(5) The mailing address, email address, and phone number of the individual applicant or a designated representative of an entity applicant;
(6) If the applicant is currently, was previously, or has applied to be licensed or authorized in another state or jurisdiction to cultivate, produce, test, dispense, or otherwise deal in the distribution of medical marijuana in any form, the following:
A. A copy of each such licensing/authorizing document verifying licensure that state or jurisdiction;
B. A statement granting the City permission to contact the regulatory agency that granted the license, accompanied by the contact information for the regulatory agency; and
C. A copy of any documentation warning, fining, denying, suspending, revoking, or otherwise sanctioning the applicant, if applicable.
(7) A list of any individuals who are directors, officers, members, or managers of the applicant, along with those persons' social security numbers and home addresses. By submitting an application, the applicant consents to the City conducting a background check on any individuals associated with the applicant;
(8) The proposed physical address of the applicant's medical marijuana entity and confirmation that the property is properly zoned and a conditional use permit has been issued;
(9) A location area map of the area surrounding the proposed medical marijuana facility, showing all parcels of real estate situated within 500 feet of the proposed medical marijuana facility;
(10) Any other information requested by the License Clerk; and
(11) A non-refundable application fee of five hundred dollars ($500.00).
(d) An application for a local provisional license shall be granted on the approval of the License Technician, except as otherwise provided in this section. A local provisional license shall expire one year from the date of issuance. A holder of a local provisional license may apply for a local operating license only while the local provisional license is valid. If a local provisional license has expired, the medical marijuana entity shall apply for a new local provisional license prior to submitting an application for a local operating license.
(e) An application for a local operating license shall be made to the License Technician and shall include:
(1) A copy of the provisional license application by the medical marijuana entity to the Ohio Department of Commerce pursuant to R.C. Chapter 3796;
(2) A copy of the provisional license granted by the Ohio Department of Commerce pursuant to R.C. Chapter 3796 to the medical marijuana entity at the address at which the facility is to be located;
(3) Confirmation that the medical marijuana entity is conforming to all requirements under this chapter, R.C. Chapter 3796, and Chapter 3796 of the Ohio Administrative Code;
(4) Confirmation that the Elyria Division of Police has inspected the medical marijuana facility and approved the security arrangements;
(5) Any other information requested by the License Technician; and
(6) A non-refundable application fee of five thousand dollars ($5,000).
(f) An application for a local operating license shall be granted on the approval of the License Technician, except as otherwise provided in this section.
(g) Every local operating license issued by the City shall expire two years after the date on which it was issued. A renewal application for a medical marijuana entity shall be submitted to the License Technician at least ninety days prior to the expiration date of the local operating license. The renewal application shall include:
(1) Confirmation that the medical marijuana entity is conforming to all requirements under this chapter, R.C. Chapter 3796, and Chapter 3796 of the Ohio Administrative Code;
(2) A copy of a valid certificate of operation issued by the Ohio Department of Commerce to the medical marijuana entity for the same address;
(3) Any other information requested by the License Technician; and
(4) A non-refundable renewal application fee of five thousand dollars ($5,000).
(h) An application for a renewal license shall be granted on the approval of the License Technician, except as otherwise provided in this section.
(i) Both local provisional licenses and local operating licenses are only valid as to the particular address listed in the initial local provisional license application. A medical marijuana entity which has obtained a local operating license may submit an application for a location change to the License Technician, which shall include:
(1) Confirmation that the medical marijuana entity is conforming to all requirements under this chapter, R.C. Chapter 3796, and Chapter 3796 of the Ohio Administrative Code;
(2) A copy of a valid certificate of operation issued by the Ohio Department of Commerce to the medical marijuana entity for the current address;
(3) The new proposed physical address of the applicant's medical marijuana entity and confirmation that the property is properly zoned and a conditional use permit has been issued;
(4) A location area map of the area surrounding the proposed medical marijuana facility, showing all parcels of real estate situated within 500 feet of the proposed medical marijuana facility;
(5) Any other information requested by the License Technician; and
(6) A non-refundable relocation application fee of five thousand dollars ($5,000).
(j) An application for a location change for a local operating license may be granted on the approval of the License Technician, except as otherwise provided in this section. If approval for the location change is granted, a new local operating license will be issued.
(k) Local provisional licenses and local operating licenses are valid only as to the particular medical marijuana entity listed in the initial local provisional license application. If the ownership of a medical marijuana entity changes, requiring a transfer of ownership application to the State of Ohio under Chapter 3796 of the Ohio Administrative Code, the medical marijuana entity shall notify the City. If the State of Ohio determines that the proposed ownership change complies with Chapter 3796 of the Ohio Administrative Code, the ownership change will be permitted by the City under the existing local provisional license or local operating license. If the State of Ohio determines that a new State license application is required under Chapter 3796 of the Ohio Administrative Code, then the ownership change shall not be permitted by the City without a new local provisional license and a new local operating license.
(l) As part of the submission of an application that results in the issuance of a local provisional license or local operating license, a medical marijuana entity irrevocably consents to the following:
(1) Any inspection by the City or the Police Department that is deemed necessary to ensure compliance by the medical marijuana entity with this chapter, R.C. Chapter 3796, and Chapter 3796 of the Ohio Administrative Code. An inspection may be conducted without notice. During an inspection, a representative of the City or the Police Department may:
A. Review and make copies of all records maintained in accordance with rules 3796:2-2-08, 3796:3-2-08, 3796:6-3-18, 3796:4-2-09 of the Ohio Administrative Code, and any other rules promulgated under R.C. Chapter 3796;
B. Enter any area in the facility or on the premises;
C. Inspect facility vehicles;
D. Review the policies and procedures of the medical marijuana entity, including methods of operating;
E. Survey the premises and any off-site facilities;
F. Inspect all equipment, instruments, tools, materials, machinery, or any other resource used to cultivate, process, dispense, or test medical marijuana;
G. Request access to locked areas in the facility;
H. Question licensed employees at the premises; and
I. Obtain samples for testing of any medical marijuana at the facility, media used to grow medical marijuana, chemicals and ingredients used in the cultivation process, any labels or containers for marijuana, or any raw packaged medical marijuana.
(m) Notification.
(1) If, at any time, a medical marijuana entity is subject to any enforcement action by the State of Ohio under Chapter 3796 of the Ohio Administrative Code, the medical marijuana entity shall immediately notify the City and provide any relevant information or documentation requested by the City.
(2) If, at any time, a medical marijuana entity or an employee thereof has a reasonable belief that an actual loss, theft, or diversion of medical marijuana or currency over one hundred dollars ($100.00) has occurred, the medical marijuana entity shall immediately notify the Police Department, and such notification shall be provided no later than twenty-four hours after discovery of the loss, theft, or diversion.
(3) If, at any time, any information in a medical marijuana entity's local provisional license application changes, the medical marijuana entity shall immediately notify the City.
(n) If, at any time, the City becomes aware that a medical marijuana entity possessing a local provisional license or local operating license has engaged or is engaged in any act or practice prohibited by this chapter, R.C. Chapter 3796, Chapter 3796 of the Ohio Administrative Code, or any other local, State, or Federal law, with the exception of acts that are permitted under State law but are Federal law violations due to the classification of marijuana as a controlled substance under 21 U.S.C. Section 812(c), the Safety Service Director may do any of the following:
(1) Refer such violations to the Ohio Department of Commerce;
(2) Issue a warning to the medical marijuana entity, which may include possible corrective action(s);
(3) Suspend the license and require any violation to be resolved and corrective actions to be taken as conditions to the reinstatement of the suspended license;
(4) Revoke the license.
(o) Notice.
(1) A warning, suspension, or revocation issued by the City under this section shall be served upon the medical marijuana entity at the address for which a local provisional license and local operating license was granted, by personal service, or by certified and regular mail, or by posting in a conspicuous location.
(2) Notice by certified mail shall be effective upon delivery. In the event that notice by certified mail is returned unclaimed or refused, the notice shall be delivered by regular mail which shall be deemed effective upon mailing. Notice by personal service or by posting shall be deemed effective at the time of personal service or posting, respectively.
(p) A medical marijuana entity shall immediately cease operations under suspension, revocation, or expiration of a local provisional license or local operating license, unless otherwise instructed by the City, until the suspension is lifted or a new, valid license is obtained.
(q) Suspension of Licenses.
(1) Licenses shall be suspended only as described in this section. Prior to suspension of a license, a hearing shall be held by the Safety Service Director. Such hearing shall be held within thirty days after notice of the hearing is given to the licensee by regular and certified mail. The licensee shall have the right to appear at such hearing, and to be represented by counsel, and to examine and cross examine witnesses. The Safety Service Director shall issue a decision to suspend or not suspend the license within five business days following the hearing.
(2) If the Safety Service Director finds clear and convincing evidence that the licensee's operation presents a danger of immediate and serious harm to others, the Safety Service Director may suspend the license without hearing. Notice of the suspension shall be given by personal service or posting at the premises, and by regular and certified mail. The notice shall also state that a hearing shall be held and shall indicate the time and place of said hearing, which shall be not more than five business days following the suspension.
(3) As a condition of the restatement of any license suspended pursuant to this section, the Safety Service Director may require any violations to be resolved and reasonable corrective actions to be taken.
(r) Revocation of Licenses.
(1) Licenses shall be revoked only as described in this section. Prior to revocation of a license, a hearing shall be held by the Safety Service Director. Such hearing shall be held within thirty days after notice of the hearing is given to the licensee by regular and certified mail. The licensee shall have the right to appear at such hearing, and to be represented by counsel, and to examine and cross examine witnesses. The Safety Service Director shall issue a decision to revoke or not revoke the license within five business days following the hearing.
(2) If a medical marijuana entity's local provisional license or local operating license is revoked, the medical marijuana entity shall coordinate with the City and the Ohio Department of Commerce in the closing of the facility as provided for in the Ohio Administrative Code.
(s) In the event that a decision or ruling of the Safety Service Director is adverse to a licensee or license applicant regarding a denial, suspension, or revocation of a license, the licensee or license applicant shall have the right to appeal such decision and ruling to a court of competent jurisdiction, under authority of and pursuant to the provisions of R.C. Chapter 2506.
(t) The Safety Service Director shall have the authority to deny any application for a local provisional license, local operating license, license renewal, or a location change, at his or her discretion, pursuant to the criteria of this chapter.
(Ord. 2017-149. Passed 11-6-17.)