(a) Grounds for Suspension or Revocation. The Director may revoke or suspend any Cannabis Business Permit if the Director finds any of the following circumstances to exist:
(1) Facts sufficient to support the denial of such permit on any ground set forth in Section 1615 of this Article 16;
(2) The Permittee has refused to permit an inspection of its business Premises or its operations under this Article;
(3) The Permittee has engaged in any conduct in connection with the operation of the Cannabis Business that violates this Article 16 (which is deemed in the entirety of this Section 1633 to include a violation of a permit condition and/or a violation of the rules and regulations adopted pursuant to this Article), or the Medicinal and Adult Use Cannabis Regulation and Safety Act, and any regulations promulgated thereto;
(4) The Director determines that such Cannabis Business is being managed, conducted, or maintained in a way that threatens the health or safety of Customers, employees, or the public at large;
(5) The Director finds good cause to suspend or revoke the permit in accordance with Business and Tax Regulations Code Sections 24 and 26;
(6) An Owner or manager of the Cannabis Business willfully violated this Article;
(7) An Owner or manager of the Cannabis Business willfully made a false statement to the Office, or discovered a false statement made to the Office by any employee or agent of the Cannabis Business and failed to promptly correct such statement; or
(8) An Owner has been convicted of a controlled substance felony subsequent to the award of a Cannabis Business Permit;
(9) The Permittee was awarded a Cannabis Business Permit as an Equity Incubator and the Permittee has failed to make a good faith effort to comply with its Cannabis Equity Incubator Agreement, as set forth in subsection (c)(4) of Section 1604 of this Article 16.
(b) The Director may not suspend or revoke a Cannabis Business Permit under this Article 16 until the Director has issued a Notice of Violation and provided the Cannabis Business an opportunity to be heard and respond as provided in Section 1631 of this Article 16. A Cannabis Business whose permit has been suspended or revoked must cease operations within 24 hours of the suspension or revocation order being final.
(c) Notwithstanding subsection (b) of this section 1633, the Director may suspend summarily any Cannabis Business Permit issued under this Article 16 when, in the judgment of the Director, the public health or safety requires such summary suspension. The Director shall provide written notice of such summary suspension to the permit holder by hand delivery, registered mail, or electronic mail. No more than three days after written notice of such summary suspension is given, the Director shall issue a Notice of Violation identifying the alleged acts or failures to act that constitute the basis for the summary suspension, and provide the Cannabis Business an opportunity to be heard and respond as provided in Section 1631 as to why the summary suspension should end. However, the time for hearing and decision shall be accelerated as follows: Upon a timely request for a hearing that includes the information required by subsection (b)(4) of Section 1631, the Director shall set any requested hearing within seven days, unless time is extended by mutual agreement of the affected parties; and the Director, or a designated hearing officer who shall have the same authority as the Director to hear and decide the case, and make any orders consistent with this Article 16, shall issue a decision on the summary suspension within seven days after hearing.
(d) If the Permittee appeals a decision by the Director or hearing officer upholding a summary suspension to the Board of Appeals, the summary suspension shall remain in effect until a final decision is issued by the Board of Appeals. Where a permit is revoked after a summary suspension, the revocation shall be effective immediately and, if the Permittee appeals to the Board of Appeals, shall remain in effect until a final decision is issued by the Board of Appeals.
(Added by Ord. 230-17, File No. 171042, App. 12/6/2017, Eff. 1/5/2018)