(A) Grounds. A CCBP may be revoked or suspended by the Director on any of the following grounds:
(1) Where the Director has found and determined that the preservation of the public health, safety, peace and welfare necessitate revocation of said permit;
(2) Where the permittee, the commercial cannabis business and/or any owner, manager or any employee thereof has violated or is in violation of any applicable provisions of this chapter, other applicable provisions of this code and/or any other applicable provision of state law;
(3) Where a permit has been granted on false or fraudulent evidence, testimony, or application; or
(4) Where the permittee, commercial cannabis business and/or any owner, manager or employee thereof has violated or is in violation of the terms and provisions of said permit.
(B) Factors for suspension or revocation. The Director may consider, but is not limited to, the following factors in deciding whether a permit should be suspended or revoked in accordance with this chapter, as applicable:
(1) The nature and severity of the acts, offense, or crimes under consideration;
(2) Any corrective action taken by the permittee;
(3) Prior violations at the permitted premises by the permittee and the effectiveness of prior corrective action;
(4) Previous sanctions imposed against the permittee;
(5) The number and/or variety of current violations;
(6) The likelihood of recurrence;
(7) All circumstances surrounding the violation;
(8) Whether the violation was willful;
(9) Any actual or potential harm to the public;
(10) The length of time the permit has been held by the permittee;
(11) Evidence of expungement proceedings under California Penal Code § 1203.4; and
(12) Any other factor that makes the situation unique or the violation of greater concern, with respect to the permittee or the permitted premises.
(C) Hearing prior to suspension or revocation. No permit shall be suspended or revoked, unless based on the suspension and/or revocation of a state license, until said permittee has had an opportunity for a hearing before the Director. The Director may delegate this duty to the Technical Advisory Committee.
(D) Written notice of the revocation or suspension, the reasons therefore and the requirement to request a hearing shall be given by certified mail to a permittee’s last known mailing address or by such other method reasonably calculated to provide notice.
(E) The revocation or suspension shall be final and effective after ten calendar days following the date of mailing set forth in division (D), unless the permittee files an application for a hearing with the City Clerk prior to such effective date. There shall be no cost to the permittee for such a hearing under this section.
(F) Except as otherwise provided in division (G), the hearing shall be commenced within 30 calendar days of the filing of an application for hearing, unless the city and permittee agree otherwise. Hearings conducted pursuant to this section shall be open to the public, shall not be conducted according to the technical or traditional rules relating to evidence, and shall provide, personally or by counsel or both, an opportunity for permittee to defend and present evidence on their behalf. At least ten calendar days prior to the hearing, permittee shall be provided with any documentation upon which the revocation or suspension is based. Following the close of the hearing, the Director or TAC shall within 30 days render a written decision, which if by the TAC shall be based upon a majority vote thereof, whether or not to impose revocation or suspension.
(G) Notwithstanding the foregoing, the Director may suspend, pending a hearing, any CCBP where it has been determined by thereby that an immediate suspension of the permit is necessary for the protection of the public health, safety, peace and welfare. In the event of such a suspension, the Director shall, within 12 hours after said suspension, cause to be served upon said business or permittee a written statement containing the grounds for said suspension, any written documentation upon which the revocation is based and a notice of hearing to show cause before the Director or TAC why said permit should not be permanently revoked, which said hearing shall be commenced no later than five calendar days following the service of said notice unless the parties thereto agree otherwise, and thereafter followed by a written decision pursuant to division (F).
(H) Following the hearing, or a waiver thereof by permittee, the Director or TAC may also modify and/or add conditions and/or requirements of the CCBP in lieu of suspension or revocation.
(I) Appeals from decision of the Director or TAC provided for herein shall be made in accordance with the procedure of § 6B.24.
(Ord. 1063, passed 2-15-2022)