(A) Suspension.
(1) A license may be suspended if the license holder or an employee or agent of the license holder:
(a) Violates or is otherwise not in compliance with any section of this chapter;
(b) Consumes or smokes or allows any person to consume or smoke cannabis on the premises of the cannabis establishment; or
(c) Knowingly dispenses or provides cannabis or cannabis products to an individual or business to whom it is unlawful to provide cannabis or cannabis products.
(2) A license may be suspended if the license holder has its registration certificate issued by the State Department of Health suspended, revoked or not renewed by the State Department of Health or if the registration certificate is expired.
(3) A license may be suspended if the license holder creates or allows to be created a public nuisance at the cannabis establishment.
(Prior Code, § 10-508)
(B) Revocation.
(1) A license may be revoked if the license is suspended under division (A) above and the cause for the suspension is not remedied.
(2) A license may be revoked if the license is subject to suspension under division (A) above because of a violation outlined in that section and the license has been previously suspended in the preceding 12 months.
(3) A license is subject to revocation if a license holder or employee of a license holder:
(a) Gave false or misleading information in the material submitted during the application process;
(b) Knowingly allowed possession, use or sale of non-cannabis controlled substances on the premises;
(c) Operated the cannabis establishment or the business of the cannabis establishment for which a license is required under this chapter while the license was suspended;
(d) Repeated violations of division (A)(1)(c) above;
(e) Operated a function of a cannabis establishment for which the license holder was not licensed (e.g., a licensed cannabis cultivation facility conducting cannabis testing functions without a cannabis testing establishment license);
(f) Is delinquent in payment to the city, county or state for any taxes or fees related to the cannabis establishment;
(g) Has been or is convicted of or employs or continues the employment of an employee who has been convicted of a disqualifying felony offense as defined by SDCL Ch. 34-20G;
(h) Has its registration certificate issued by the State Department of Health suspended, revoked or not renewed or the registration certificate is expired; or
(i) Allows a public nuisance to continue after notice from the city.
(Prior Code, § 10-509)
(C) Suspension and revocation process.
(1) The license holder will receive a notice of intent to suspend or notice of intent to revoke informing the license holder of the violation and the city’s intention to suspend or revoke the license. The notice will be hand delivered to the license holder or an employee or agent of the license holder or sent by certified mail, return receipt requested to the physical address of the cannabis establishment.
(2) If the license holder disputes the suspension or revocation, the license holder has ten days from the postmark date on the notice or the date the notice was hand delivered to request a hearing before a hearing panel, which will consist of the Finance Officer, Director of Public Safety and Planning Director.
(3) If the license holder disputes the determination made by the hearing panel, the license holder may request a review by the City Administrator. The City Administrator will review any documents and information relevant to the suspension or revocation but will not hold a hearing. The City Administrator will either affirm or reverse the hearing panel’s decision.
(4) A suspension will be for 30 days and begins ten days after the postmark date on the notice or the date the notice is hand delivered unless the license holder exercises its rights to process and appeal, in which case the suspension takes effect upon the final determination of suspension.
(5) A revocation will be for one year and begins ten days after the postmark date on the notice or the date the notice is hand delivered unless the license holder appeals the revocation, in which case the revocation takes effect upon the final determination of revocation.
(6) The license holder who has had the license revoked may not be issued any cannabis establishment license for one year from the date the revocation became effective.
(Prior Code, § 10-510)
(Ord. 1346, passed 6-21-2021; Ord. 1355, passed 10-4-2021) Penalty, see § 118.99