(A) The owner of a cannabis business permit shall not transfer ownership or control of the permit to another person or entity unless and until the transferee obtains an amendment to the permit from the City Manager stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the City Manager in accordance with all provisions of this chapter (as though the transferee were applying for an original cannabis business permit). The proposed transferee's application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee).
(B) The City Manager shall conduct a hearing to determine whether the transferee satisfies the eligibility requirements for a new permit. The transferee's application will be treated as a new application and will be evaluated according to the procedures used for the existing application and for renewal of applications. This will require a complete evaluation of the application and an interview of the applicant prior to the hearing, including a determination of whether the transfer involves a substantial change in ownership (any alteration in the permittee's business structure/ownership that results in a change of 51% or more of the original ownership). Following the hearing, the City Council must approve the transfer in order for it to be authorized, as provided in division (D) of this section. If the transfer involves a lesser percentage of the change in ownership than the threshold cited above, then the hearing will be administrative in nature and City Council approval will not be required for the transfer to be authorized.
(C) Cannabis business permits issued through the grant of a transfer by the City Manager shall be valid for a period of one year beginning on the day the City Manager approves the transfer of the permit. Before the transferee's permit expires, the transferee shall apply for a renewal permit and pay the appropriate fee in the manner required by this chapter.
(D) Changes in ownership of a permittee's business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than 51% of the original ownership), must be approved by the City Council following completion of the transfer process contained in division (A). Failure to comply with this provision is grounds for permit revocation.
(E) A permittee may change the form of business entity without applying to the City Manager for a transfer of permit, provided:
(1) The membership of the new business entity is substantially similar to original permit holder business entity (at least 51% of the membership is identical).
(2) Although a transfer is not required in this circumstance, the permit holder is required to notify the City Manager in writing of the change within ten days. Failure to comply with this provision is grounds for permit revocation.
(F) A cannabis business permit shall not be transferred when the city has notified the permittee in writing that the permit has been or may be suspended or revoked.
(G) Any attempt to transfer a cannabis business permit either directly or indirectly in violation of this section is hereby declared a violation of the permit and this chapter. Such a purported transfer shall be deemed a ground for revocation of the permit.
(Ord. 977 C.S., passed 6-16-21)