(a) The person granted a commercial cannabis business permit shall not transfer ownership or control of the permit to another person unless and until the transferee obtains an amendment to the permit from the City Manager or his/her designee stating that the transferee is now the permittee. Such an amendment may be obtained only if the transferee files an application with the City Manager or his/her designee in accordance with all provisions of this Chapter (as though the transferee were applying for an original commercial cannabis business permit) accompanied by a transfer fee in an amount set by Resolution of the Mayor and City Council (or if not set, shall be the same amount as the application fee), and the City Manager or his/her designee determines, after hearing, in accordance with this Chapter that the transferee passed the background check required for permittees and meets all other requirements of this Chapter. No transfer of ownership may occur within five (5) years of the date the commercial cannabis business permit is originally issued, except as provided below.
(b) Commercial cannabis business permits issued through the grant of a transfer by the City Manager or his/her designee shall be valid for a period of one year beginning on the day the City Manager or his/her designee approves the transfer of the permit. Before the transferee's permit expires, the transferee shall apply for a renewal permit in the manner required by this Chapter.
(c) Changes in ownership of a permittee's business structure or a substantial change in the ownership of a permittee business entity (changes that result in a change of more than 51% of the original ownership), must be approved by the City Manager or his/her designee through the transfer process contained in subsection (a). Failure to comply with this provision is grounds for permit revocation.
(d) A permittee may change the form of business entity without applying to the City Manager or his/her designee for a transfer of permit, provided that either:
(1) The membership of the new business entity is substantially similar to the original permit holder business entity (at least 51% of the membership is identical), or
(2) If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA and to comply with Section 5.10.060, subdivision (b), provided that the Board of Directors (or in the case of an unincorporated association, the individual(s) listed on the City permit application) of the original permittee entity are the same as the new business entity. Although a transfer is not required in these two circumstances, the permit holder is required to notify the City Manager in writing of the change within ten (10) calendar days of the change. Failure to comply with this provision is grounds for permit revocation.
(e) No commercial cannabis business permit may be transferred when the City Manager or his/her designee has notified the permittee that the permit has been or may be suspended or revoked.
(f) Any attempt to transfer a commercial cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such a purported transfer shall be deemed a ground for revocation of the permit.
(g) The location specified in the commercial cannabis business permit may not change without an amendment to the permit, processed in the same manner as an initial permit pursuant to the process and fees set forth in Section 5.10.090.
(Ord. MC-1503, 9-05-18; Ord. MC-1464, 3-07-18)