(A) Any person, including but not limited to any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, in which any of the following actions or notices have been issued for non-compliance, shall not be eligible to obtain a cannabis business permit from the city or from employment with a cannabis business permittee in the City of Madera:
(1) The applicant has been denied a cannabis license due to a disqualifying factor or has had a cannabis license suspended or revoked by any city, county, city and county or any other state cannabis licensing authority;
(2) The applicant was notified by the state, county, or city that it was conducting cannabis activity in violation of city ordinances, codes, and requirements, and failed to cure the violation in a timely manner;
(3) Evidence that the applicant is delinquent in payment of federal, state, or local taxes and/or fees, and has taken no steps to cure the delinquency when notified by the appropriate agencies;
(4) As of June 16, 2021, applicant was conducting cannabis activity in the City of Madera in violation of local and state law.
(B) No person shall be issued a cannabis business permit to operate if that person enters into either a verbal or written agreement to lease, sublease, or any other agreement for any terms of use of the premises granted by a property owner, commercial broker or any third party, that is in violation of § 6-5.07 above unless that property is leased at fair market value. Any such lease, sublease or agreement shall not contain terms or conditions requiring the cannabis businesses permit licensee to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the city. In addition, all leases, subleases, or other agreements must be based on a monthly rate.
(Ord. 977 C.S., passed 6-16-21)