(a) Grounds for modification, revocation or suspension. The director may modify, suspend or revoke a permit based on any of the following grounds:
(1) The building, structure, premises or equipment used to conduct or operate medical marijuana cooperative or collective fails to comply with any applicable health, zoning, fire, and building and safety laws of the state of California or the city;
(2) Medical marijuana cooperative or collective is established, operated or maintained in a manner that would justify the denial of the application for a permit, based on the grounds set forth in Section 5.58.050(e).
(3) The existence of any conditions constituting a public nuisance under California law, including but not limited to California Civil Code §§ 3479 or 3480 or the code;
(4) Permittee is operating the medical marijuana cooperative or collective not in conformance with any requirements of this chapter, applicable provisions of guidelines or the state law;
(5) The permittee, permittee's employees, agents or manager has conducted or operated medical marijuana cooperative or collective in a manner contrary to the peace, health, safety and the general welfare of the public, including, without limitation, by allowing or failing to prevent the use of the business as a base or magnet for unlawful or criminal activity;
(6) The permittee has violated one or more conditions upon which the permit has been issued;
(7) The permittee, while holding an active permit, has committed an act which would have resulted in the denial of the permit pursuant to this chapter; or
(8) The permittee has failed to pay business license fee as required by Chapter 5.04 of the code.
(c) Procedures for modification, revocation or suspension.
(1) On determining that grounds for modification, revocation or suspension of a permit exist, the director shall furnish written notice of the proposed action to the permittee. Such notice shall set forth the lime and place of a hearing, and the ground(s) upon which the proposed suspension or revocation is based, the pertinent provisions of this chapter. Guidelines, code, zoning code or state law, and a brief statement of the factual matters in support thereof. The notice shall be mailed, postage prepaid, addressed to the last known address of the permittee, or shall be personally delivered to the permittee, at least ten days prior to the hearing date.
(2) The public hearing on modification, revocation or suspension of the permit shall be conducted by the director or his/her designee, which may include a third party hearing officer. Additionally, such hearings shall be conducted in accordance with procedures established by the director but, at minimum shall include the following.
(A) All parties involved shall have a right to:
1. Offer testimonial, documentary and tangible evidence bearing on the issues;
2. Be represented by counsel; and
3. Confront and cross-examine witnesses.
(B) Any relevant evidence may be admitted that is the sort of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs.
(C) Any hearing under this section may be continued for a reasonable time for the convenience of a party or a witness at the request of the permittee. Extension of the time or continuances sought by a permittee shall not be considered delay on the part of the city or constitute failure by the city to provide for prompt decisions on permit suspensions or revocation.
(3) After holding the public hearing in accordance with this section, if the director finds and determines that there are grounds for modification, suspension or revocation of the permit, the director shall impose one of the following:
(A) Modification of the permit;
(B) Suspension of the permit for a specified period; or
(C) Revocation of the permit.
(D) The director shall render a written decision that shall be served by depositing the notice of the decision in U.S. mail, postage prepaid, within thirty days of the public hearing.
(d) In the event a the permit is revoked pursuant to this section, another permit to operate medical marijuana cooperative or collective shall not be granted to the permittee or an entity related to the permittee within twelve months after the date of such revocation.
(e) Whenever a permit is suspended or revoked by the director or city council on appeal. Director or Los Angeles County sheriff's department shall take into possession the permit for the subject operation. The permittee shall surrender the permit. No permit fee refunds shall be issued to any permittee upon suspension or revocation of the permit.
(f) Upon revocation or suspension of a permit, the permittee shall immediately cease operation of the activity, unless permittee files a timely appeal, in which case the director's decisions shall be stayed pending the outcome of the appeal. Except as otherwise provided, in the event that the permit is suspended, the permittee may resume operation once the suspension period has expired.
(g) The decision of the director may be appealed pursuant to Section 5.58.110. The suspension or revocation shall become effective ten calendar days following the date of service upon the permittee, unless the permittee files a written request for an appeal hearing pursuant to Section 5.58.110. If the permittee files an appeal within the time and manner prescribed, the permit shall remain in effect until the appeal is finally determined.
(Ord. 09-893, § 2, 2010)