(a)
The City Council finds that medicinal cannabis retailing requires
specific regulation, in order to maintain the public health, safety
and welfare. No person shall operate, or cause to be operated, a commercial
medicinal cannabis retail use without having first obtained a medicinal
cannabis retailer permit and a business license from the City.
(b)
In accordance with the City's Zoning Ordinance, the City may, in
its discretion, award no more than two active permits for the operation
of medicinal cannabis retail uses within the City.
(c)
The permit(s) shall be awarded through a competitive process initiated
through a request for applications issued by the City. Permit applications
shall be evaluated based upon objective criteria including: experience;
financial wherewithal and stability; insurance; familiarity and capability
of operating in the City of Santa Monica; proposed community benefits;
relevant record of the applicant or owner's violations of Federal,
State or local law, or rules and regulations of local jurisdictions;
and any other objective criteria established by administrative regulation.
(Added by Ord. No. 2556CCS §
3, adopted 10/24/17)
(a)
All permit applications shall be completed on a form designated by
the City, and signed by the applicant under penalty of perjury.
(b)
Renewal applications shall be filed a minimum of thirty days prior
to the expiration of any existing permit.
(c)
All applicants shall provide the following information with their
applications:
(1)
The names, residence and business addresses of all officers, persons
and entities having any share of ownership of the applicant or the
proposed operation, including, but not limited to, ownership interest
in the overall operation, inventory, equipment or real estate.
(2)
The names and addresses of any parent or subsidiary of the applicant,
namely, any other business entity owning or controlling the applicant
in whole or in part, or owned or controlled in whole or in part by
the applicant, and a statement describing the nature of any such parent
or subsidiary business entity.
(3)
Names and address of any or all persons responsible for the activities
of the retailer, including principals, officers, directors, managers
and employees.
(4)
Copies of articles of organization or incorporation.
(5)
Detailed financial information, including information on existing
and proposed loans to the applicant for the proposed operation and
the names and contact information for the lenders.
(6)
A description of the proposed plan of operation, including the proposed
business plan, a detailed description of the business's regulatory
compliance program, and intent to operate as non-profit or for-profit
business.
(7)
A detailed description of any plans for on-site cultivation, including
a detailed description of chemical and water use.
(8)
A detailed description of any community benefits created by the proposed
operation.
(9)
If known, the name and address of the owner and owner's representative
of the real property upon which the retail establishment will be located.
If no lease has been signed, a list of the names and addresses of
any owner and owner representatives for properties related to which
bona fide leasing discussions have begun.
(10)
Authorization to conduct background checks on all individuals associated
with the operation of the retailer, including, but not limited to,
all principals, officers, directors, managers and employees.
(11)
Names, addresses, and complete licensing information for all current
and anticipated suppliers of cannabis products proposed to be sold.
(12)
Names, addresses, and complete licensing information for all current
and anticipated cannabis testing facilities to be used.
(13)
A listing of all other cannabis-related business locations owned
or operated by the applicant, including any person with any financial
interest in any such cannabis-related operation, along with copies
of any operating permits for all locations.
(14)
Any other requirements set forth by administrative regulation.
(Added by Ord. No. 2556CCS §
3, adopted 10/24/17)
(a)
Each medicinal cannabis retailer permit application shall first be examined by the Director to determine if the applicant is qualified. An applicant is qualified if the application meets all standards set forth in this Ordinance and administrative regulations, and is not subject to denial pursuant to Section 6.200.090 of this Code.
(b)
The Director shall establish a committee to evaluate and provide
to the Director recommendations and a ranking of all qualified applicants
based on established objective criteria set forth by this Ordinance
and administrative regulation, including background checks completed
by the Police Department.
(c)
The Director shall review de novo the committee's recommendations,
along with any other information the Director deems relevant, and
establish the final rankings of the qualified applicants. The Director
may request additional information from either the committee, the
Police Department, any applicant, or any other source that would assist
in determining the final rankings.
(d)
The highest-ranked applicant(s), corresponding to the number of positions
available, shall be awarded with a Preliminary Selection Letter, stating
the City's intent to issue a medicinal cannabis retail permit, subject
to the applicant complying with all other permit conditions and requirements.
The Preliminary Selection Letter shall not guarantee final issuance
of a permit, and the Letter shall expire if not timely exercised.
If there is a tie in the rankings, a lottery shall be used to establish
the final rankings for any applicants that achieved the same score.
If an applicant who is issued a Preliminary Selection Letter is disqualified
or withdraws prior to the expiration of the ranking, the next applicant
on the ranking may be issued a Preliminary Selection Letter.
(e)
Any applicant in receipt of a Preliminary Selection Letter may proceed
to seek all other permits and approvals, including the City's land-use
approvals, the City's medicinal cannabis regulatory permit pursuant
to this Ordinance, and a City business license.
(f)
Any applicant may appeal the Director's qualification or ranking determination, with respect to that applicant, to a Hearing Examiner for consideration pursuant to the procedures set forth in Chapter 6.16 of this Code.
(1)
The Hearing Examiner shall review the Director's qualification determination
de novo and shall render a final decision regarding qualification.
(2)
The Hearing Examiner shall review the Director's ranking decisions
based on an abuse of discretion standard. The Hearing Examiner shall
affirm the Director's ranking decisions if he or she finds, based
on a preponderance of the evidence, that the City conducted the ranking
process in compliance with all applicable laws and that the Director
did not act in an arbitrary or capricious manner. If otherwise, the
Hearing Officers shall remand the matter back to the Director so that
a new ranking process can be completed.
(g)
Any final ranking results shall expire after twelve months. The Director
may extend any final ranking result by up to twelve months, if the
Director finds that the extension is appropriate given the City's
progress in permit processing. Upon expiration of the ranking results
or the lack of qualified applicants, the City may re-initiate the
ranking process set forth in this Chapter.
(Added by Ord. No. 2556CCS §
3, adopted 10/24/17)
(a)
The City shall issue a medicinal cannabis retailer regulatory permit
to any applicant who:
(1)
Is in possession of a valid Preliminary Selection Letter and remains
in substantial compliance with the original proposal;
(2)
Has obtained all applicable City land-use approvals;
(3)
Has a valid medicinal marijuana retailer license from the State of
California;
(4)
Has paid all required fees;
(5)
Meets all applicable standards set forth in this Code, administrative
regulations and any other applicable laws; and
(b)
The medicinal cannabis retailer regulatory permit shall expire if
it is not timely exercised.
(Added by Ord. No. 2556CCS §
3, adopted 10/24/17)
