(c) A permittee may change the form of business entity without applying to the City Council for a transfer of permit, provided that either:
(1) The membership of the new business entity is substantially similar to 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 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 or designee in writing of the change within ten (10) days of the change. Failure to comply with this provision is grounds for permit revocation.
(d) No commercial cannabis business permit may be transferred when the City Manager or Police Chief has notified the permittee that the permit has been or may be suspended or revoked.
(e) 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.
(§ 2, Ord. 1636-NS, eff. December 29, 2017)