A. Application For License: An applicant must submit a signed application, in writing, to the city finance office using the form established by the city. Such application must include:
1. The legal name of the applicant.
2. The physical address of the applicant.
3. The name and date of birth of each principal officer and board member of the applicant entity.
4. Previous experience operating a legal cannabis establishment, if any.
5. Summary of operating procedures, including procedures to ensure accurate record keeping, adequate security measures, sufficient fire and building code considerations, and compliance with all other requirements of this chapter.
6. Confirmation that none of the principal officers or board members has served as a principal officer or board member for a cannabis establishment that has had governmental license or certification revoked in any jurisdiction.
7. Confirmation that none of the principal officers or board members is under twenty-one (21) years of age.
8. Confirmation that the applicant has conducted a background check into the criminal history of each principal officer, board member, agent, volunteer, or employee involved in the operation at the time of application.
9. Proof that at least one (1) principal officer is a resident of this state.
10. Payment of the applicable license fee.
11. A copy of the applicant's sales tax license.
12. Proof that all property taxes, business improvement district taxes, and pending assessments relating to the cannabis establishment location have been paid.
13. Proof of financial responsibility in the amounts and manner established in this chapter below.
14. A sworn statement that the application contains no false statements made or omissions of any material matter in any application for a license.
15. The applicant's notarized signature.
16. All application materials the applicant intends to submit to the state Department of Health for seeking a registration certificate.
B. Action By City Council:
1. The city council will consider a completed application at the next available city council meeting following submittal, provided that such application must be submitted in advance of the general agenda item submission deadline established by the finance office. Applications are generally processed on a first come, first served basis except as further provided by this chapter.
2. The city council may approve or deny an application in full or on condition. Such action of the city council must take place within thirty (30) days after the application's first presentment to the city council.
3. If approved, the mayor and finance officer will endorse the application and notify the applicant of approval by close of business on the next business day following the city council's approval. If the council imposes any conditions, such conditions shall be listed on the license at the time of issuance. No approved application shall become effective and no license shall be issued until the applicant provides to the finance officer a copy of the applicant's certificate of registration from the state relating to the cannabis establishment for which the license was approved. If the applicant made any material changes to their application materials during the process of state certification, then the applicant must provide such updated materials to the city council and the city council must approve of such changes before the license may be issued.
4. If denied, the council must state the basis on which the application was denied, which may include, but is not limited to: incorrect application information, missing required application criteria, insufficient detail in application, nonpayment of any obligation, proposed activity would violate city ordinance, proposed activity would violate state law or regulations, no license available due to maximum number already issued, proposed location not zoned properly, proposed location does not comply with an applicable buffer zone, or concerns over potential building, fire, or nuisance code issues.
5. No application for a license of any kind under this chapter may be received by the city finance office until such time as the state of South Dakota promulgates their initial regulations under SDCL Section 34-20G-72. Any application submitted prior to such time shall be deemed rejected.
C. Special Procedures for Capped Licenses:
1. For license classes where the council has established a numerical cap, applications shall be accepted by the special procedures provided in this section.
2. These special procedures shall apply whenever a new license becomes available in a capped license class.
3. When such availability occurs, the city shall publish an invitation for applications on the city's website stating the deadline to apply and the location applications may be submitted. No application for a capped license class will be accepted prior to publication of the invitation nor after the deadline established in the invitation.
4. Applications submitted pursuant to an invitation must be submitted in writing and sealed. An applicant may not supplement their application after the deadline has passed.
5. Once the deadline has passed, the finance officer shall open all sealed applications received during the invitation submittal window and review each application for completeness. Applications which are objectively incomplete shall be rejected and ineligible for further consideration. Applications which may be incomplete, but which require subjective interpretation, may continue through the process for the city council to make such determination. Such review shall be completed within five (5) business days from the established deadline to receive applications.
6. The remaining applications shall be placed into order by the finance officer utilizing a lottery system to establish the order in which applications will be considered. Following the review period, the finance officer shall publish notice of the lottery on the city's website at least twenty-four (24) hours in advance of the lottery being conducted and such lottery shall be open to the public. Once the lottery is completed, the remaining applications will be placed on the agenda of the next regularly available city council meeting.
7. Remaining applications will then be considered by city council on their merits in the order set by lottery. City council will approve or deny applications in the established order, but may review all applications before deciding on any individual application. City council will approve or deny the applications in order until all applications have been acted on or the numerical cap has been reached. If the numerical cap has been reached and there are still applications which have not been acted on, such undecided applications shall be deemed rejected.
8. If no applications are received following an invitation for applications, or if the numerical cap is not reached pursuant to an invitation for applications, these special rules shall no longer apply and applications may be received, processed, and considered on a first come, first served basis beginning at open of business the day following the city council meeting at which the last application was acted upon pursuant to the invitation for applications. Such applications must be delivered in writing to the finance office no earlier than the time specified above and applications received before such time are deemed rejected.
9. If the numerical cap is then reached while using the first come, first served system, and a license subsequently lapses making a new license available, these special procedures shall apply to issuing the new license.
D. Renewal Process:
1. A person or entity operating pursuant to a license must submit an application for renewal of such license at least forty-five (45) days but not more than ninety (90) days prior to the expiration of such license using the form provided by the city finance office. Such application must include payment of the renewal application fee.
2. The city council will consider renewal applications using the same factors and timelines applicable to new applications. In addition, the city council may also consider in approving, denying, or conditionally approving a renewal application, any changed information from prior applications, concerns over actual operations or violations, nonpayment of obligations, or any on other information reasonably related to the continued operation of the cannabis establishment.
3. Applications for renewal submitted within the applicable window will be given priority over new applications in a capped license class. Renewal applications submitted after the window has expired will be given no priority and must submit a new application.
4. The renewal application must specify if any information has changed from its prior application.
5. The renewal application must be accompanied by all payments relating to the renewal application as well as a copy of the licensee's state certification.
6. The renewal application must re-confirm or prove all the requirements applicable to new applications remain met, including but not limited to financial responsibility, background checks, age, residency, etc.
7. An applicant is not automatically entitled to renewal of their license and the license will only be renewed by city council after full consideration of the unique facts and circumstances pertaining to each individual license. (Ord. O2021-07, 6-2-2021; amd. Ord. O2021-13, 9-27-2021)