(A) Grounds for denial or non-renewal. The Administrative Officer or his/her designee may deny an application for issuance or renewal of a cannabis business permit or a cannabis employee work permit to any of the following persons, including, but not limited to, any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular:
(1) Any person who, as of January 1, 2019, engages in commercial cannabis activity in the county in violation of local and/or state law;
(2) Any person whom any city, county, city and county, or the state has, for any reason, denied, suspended, or revoked any state license or local jurisdiction permit authorizing commercial cannabis activity, or employment by a cannabis business;
(3) Any person issued a notice of non-compliance for engaging in unlawful commercial cannabis activity in violation of this code, and/or other laws, codes, or requirements in which they failed to timely discontinue the unlawful activity;
(4) Any person who, after reasonable notice and time to cure, failed to timely pay all federal, state, or local taxes and/or fees owed as applicable; and/or
(5) Any person who enters into an agreement to lease, sublease, or otherwise agrees, regardless of whether it is verbally or in writing, to any terms of use of the premises from a property owner, commercial broker, or any third party, that is based on a term other than a monthly rate, or is in violation of § 7.02.060 unless that property is leased at fair market value and such lease, sublease, or agreement does not have any terms or conditions for the cannabis business to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the county.
(B) Furthermore, the Administrative Officer or his/her designee may deny an application for issuance or renewal of a cannabis business permit for any of the following reasons, as applicable:
(1) The application was not timely filed;
(2) Any cannabis business permit issued to the applicant was suspended or revoked at the time the renewal application was submitted;
(3) The permittee has not been in regular and continuous operation in the four months prior to submission of the renewal application;
(4) The applicant failed to conform to the requirements of this chapter, or of any regulations adopted pursuant to this chapter;
(5) The permittee fails or is unable to renew its state license;
(6) The applicant was notified that they were conducting commercial cannabis activity in non-compliance with Title 25, other provisions of this code and requirements in which they failed to discontinued operating in a timely manner;
(7) Evidence that the applicant was in non-compliance of properly paying federal, state, or local taxes and/or fees when notified by the appropriate agencies;
(8) As of January 1, 2019, applicant was conducting commercial cannabis activity in the county in violation of local and state law; or
(9) No person shall be issued a commercial cannabis permit to operate who enters into an agreement to lease, sublease, or any other agreement, regardless of whether it is verbally or in writing to any terms of use of the premises from a property owner, commercial broker, or any third party, that if an application is denied, a new application may not be filed for one year from the date of the denial or non- renewal.
(C) Suspension or revocation of cannabis business permit. A cannabis business permit may be suspended or revoked for any of the following reasons:
(1) Effect of state license suspension or revocation. Suspension of a license issued by the state, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the county, until the state, or its respective department or division, reinstates or reissues the state license. Should the state, or any of its departments or divisions, revoke or terminate the license of a cannabis business, such revocation or termination shall also revoke or terminate the ability of a cannabis business to operate within the county.
(2) Revocation of permits. Cannabis business permits may be revoked for any violation of any law and/or any rule, regulation, and/or standard adopted pursuant to §§ 7.02.056 or 7.02.064, or pursuant to any policy, procedure, or regulation in this chapter. If the local permit is revoked, the county will notify the owner/operator in writing prior to revocation.
(3) Other grounds for suspension or revocation of cannabis business permit. Cannabis business permits may be suspended or revoked for any violation of any law and/or any rule, regulation, and/or standard adopted pursuant to this section or § 7.02.110, or pursuant to any policy, procedure, or regulation in this chapter.
(Ord. 974, § 1, 2018)