A. A cannabis business must provide the city with names and addresses of all of the following interested parties of the business:
1. Each person with an aggregate ownership interest of 20% or more, unless the interest is solely a security, lien, or encumbrance; and
2. All officers, members of the board of directors, limited liability company managers, and other persons with similar responsibilities.
B. The permittee shall notify the city of any change in the information above within 30 days of the change.
C. All interested parties, as described in subsection A, must submit to fingerprinting and a criminal background check by the city.
D. Unless the city manager determines, in accordance with subsection G, that the person's involvement as an interested party would not compromise public safety, no person shall be an interested party, as described in subsection A, if he or she has been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business. "Convicted" within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere was entered, but does not include any plea, verdict, or conviction that is expunged pursuant to federal or state law.
E. The offenses that are substantially related to the qualifications, functions, or duties of a cannabis business include:
1. A violent felony, as specified in California Penal Code section 667.5(c).
2. A serious felony, as specified in California Penal Code section 1192.7(c).
3. A felony involving fraud, deceit, or embezzlement.
4. A felony involving the hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.
5. A felony for drug trafficking with enhancements pursuant to California Health and Safety Code sections 11370.4 or 11379.8.
F. Except for convictions of offenses described in subsections E.4 and E.5, a prior conviction, where the sentence, including any term of probation, incarceration, or supervised release, is completed, for possession of, possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance is not considered substantially related, and shall not be the sole ground for denial of a permit. Conviction for any controlled substance felony subsequent to the issuance of a permit shall be grounds for revocation of a permit or denial of the renewal of a permit.
G. A person who has been convicted of an offense that is substantially related to the qualifications, functions, or duties of a cannabis business may be an interested party, if the city manager determines that the person's involvement as an interested party would not compromise public safety. In making the determination, the city manager may consider all available information, including information provided by the person. The city manager shall consider the following factors when determining whether the person's involvement would compromise public safety:
1. The nature of the crime or conviction.
2. The circumstances surrounding the crime or conviction.
3. The bearing, if any, the crime or conviction has on the person's fitness or ability to perform one or more of their duties and responsibilities as an interested party.
4. The time that has elapsed since the crime or conviction.
5. The person's rehabilitation and good conduct since the crime or conviction. (Ord. 2022-0006 § 2; Ord. 2017-0060 § 2; Ord. 2017-0058 § 1; Ord. 2017-0046 § 1)