Step 1. Any applicant seeking to obtain an RSP to operate a cannabis permitted use within the City shall submit a preliminary application to the City, signed under penalty of perjury, using the form created by the City for that purpose. Among other information, each preliminary application must contain the following: |
a. | Applicant's name, address, telephone number, and e-mail address; |
b. | Names and addresses of the responsible managing officer, managers, and responsible persons; |
c. | If any applicant is a business entity or any other form of entity, the entity's legal status, formation documents, and proof of registration with, or a certificate of good standing from, the California Secretary of State, as applicable; |
d. | The name and address of the applicant's current agent for service of process; |
e. | A description of any and all commercial cannabis activity (including medical marijuana) engaged in by the applicant, the responsible managing officer, and all managers and responsible persons over the previous five years, including, but not limited to, the location of such activity and a copy of any permits, licenses, or other written forms of permission for such activity by a local or state government entity. An applicant for a cannabis outlet, must demonstrate the following: |
| That the responsible managing officer or at least one manager of the proposed cannabis outlet shall have engaged in a minimum of 12 consecutive months of lawful commercial cannabis activity with a medical cannabis business, within the previous five years, in a jurisdiction permitting such commercial cannabis activity for medicinal purposes. The 12 consecutive months of lawful commercial cannabis activity demonstrated must be of a type substantially similar to that allowed by the RSP for which the applicant is applying; |
f. | Documentation demonstrating a minimum of $300,000.00 in liquid assets available under the applicant's control; |
g. | A business plan that contains, at a minimum, the following: a defined scope of planning and capital improvements; demonstration of ability to fund the required improvements; estimated revenues and expenses; and a demonstrated ability to operate in a highly regulated industry; |
h. | An operating plan that contains, at a minimum, the following: provisions for adequate staffing, security, employee training, consumer education, and compliance with state and local laws and regulations; |
i. | Submission by each individual applicant, the responsible managing officer, manager, and responsible person of fingerprints and other information deemed necessary by the City for a background check by the City. If the applicant or any manager is an entity, the City Manager will require individual employees, officers, members, representatives, or partners of each entity to submit fingerprints and other information deemed necessary by the City for a background check; |
j. | Proposed cannabis outlet location and description; |
k. | Information and diagrams demonstrating that the proposed premises location complies with the applicable requirements of this chapter, including the specific requirements of Section 4.60.100, Title 19 of this code, and state laws. A "to scale" diagram of the proposed premises, showing, without limitation, a site plan to include all of the following elements: as shown in Chapter 19.81 of this code such as building layout, leasable floor space, all entryways and exits to the cannabis establishment, loading zones and all areas in which cannabis may be located; |
l. | Identification of all owners of the proposed premises location and a copy of all agreements to demonstrate ownership of the property and/or a valid lease or other right to use the property by applicant; |
m. | Proposed emergency action and fire prevention plan that includes, at a minimum, employee roles and responsibilities; emergency notification and egress procedures; fire hazard identification, maintenance, and procedures; and fire and life safety system identification, maintenance, and procedures; |
n. | Proposed security plan that includes, at a minimum, employee roles and responsibilities; entry/exit security and procedures; security guard coverage and duties; lighting, alarm, and camera placement and operation; limited-access area identification and procedures; and cash handling processes and procedures; |
o. | A statement, under penalty of perjury, by each individual applicant, responsible managing officer, manager, and responsible person that all information provided thereby is true and correct and that he or she has not conducted commercial cannabis activity in violation of any state or local law; |
p. | If an individual applicant, responsible managing officer, manager, responsible person or any entity such individual has been associated with in such capacity, has been denied authorization to conduct commercial cannabis activity in any jurisdiction and/or such person's authorization to conduct commercial cannabis activity in any jurisdiction has been suspended or revoked at any time, a description of each denial, suspension and/or revocation, including the reasons therefor, a copy of the jurisdiction's denial, suspension and/or revocation; and documentation demonstrating a material change in circumstances since such denial, suspension, or revocation; |
q. | The City Manager, or designee, may request such additional information, as he or she deems necessary including documents, from the applicant to evaluate applicant's qualifications. Applicants will be given 30 working days after notice by the City to cure any deficiencies in the application, if applicable, as identified by the City. If the applicant fails to provide such additional information in the time allotted, the preliminary application shall be considered abandoned. |
Step 2. The preliminary application shall be reviewed by the City Manager or designee for completeness and to determine if the City's minimum qualifications have been satisfied. Preliminary applications may be rejected by the City Manager or designee for any of the following reasons in his or her discretion: |
a. | The application is received after the designated time and date; |
b. | The application is not in the required form and/or is incomplete. A preliminary application shall not be considered complete until the City Manager, or designee has: (i) determined that all requirements of the application have been provided to the City, (ii) received the cost recovery application deposit fee, and (iii) obtained all other information the City Manager deems necessary to make a decision whether the preliminary application meets the requirements of state laws or this code; |
c. | The applicant has failed to pay the cost recovery application deposit fee required by this chapter; |
d. | The applicant has failed to demonstrate the financial capacity to operate its proposed commercial cannabis business and to fulfill its obligations under this chapter; |
e. | The applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in the application process; |
f. | The applicant, the responsible managing officer, any manager or responsible person is under 21 years of age; |
g. | The applicant or the responsible managing officer, any manager or responsible person is an entity that is incorporated outside of the United States; |
h. | The applicant has failed to demonstrate the minimum experience required in accordance with subsection B (Step 1)(e) of this section; |
i. | The application fails to demonstrate that the proposed cannabis outlet location complies with this chapter, the City's zoning code, and state laws; |
j. | An owner of the proposed premises location has been adversely sanctioned or penalized by the City, or any other city, county, or state, for a material violation of state or local laws related to commercial cannabis activity; |
k. | The applicant or the responsible managing officer, any manager or responsible person has had his, her or its authorization to conduct commercial cannabis activity in any jurisdiction suspended or revoked at any time, and such person has not demonstrated a material change in circumstances or corrective action since such suspension, and/or revocation. |
Step 3. Preliminary applications accepted by the City Manager or designee as minimally qualified shall then be forwarded for review and completion of any and all required background checks. Preliminary applications may then be rejected by the City Manager or designee for any of the following reasons in his or her discretion: |
a. | The applicant has made a false, misleading or fraudulent statement or omission of fact in the application or in the application process; |
b. | The applicant, the responsible managing officer, any manager or responsible person or any other individual identified by the City has failed to submit finger-prints and other information deemed necessary by the City Manager or designee for a background check by the City; |
c. | The applicant or the responsible managing officer, any manager or responsible person has been convicted of a felony; |
d. | The applicant or the responsible managing officer, any manager or responsible person has been convicted of any crime of moral turpitude or any offense involving the use of a weapon; |
e. | There are charges pending against the applicant, or the responsible managing officer, any manager or responsible person for a felony offense, a crime of moral turpitude, or an offense involving the use of a weapon; |
f. | The applicant, or the responsible managing officer, any manager or responsible person has been adversely sanctioned or penalized by the City, or any other city, county, or state, for a material violation of state or local laws or regulations related to commercial cannabis activity or to pharmaceutical or alcohol licensure. |
Step 4. The City Manager or designee shall serve the applicant, either personally or by first class mail addressed to the address listed on the application, with dated written notice of the decision to reject the preliminary application. This notice shall state the reasons for the action and the effective date of the decision. The City Manager's determination regarding the preliminary application shall be final. The City Manager shall provide dated written notice to the applicant, either personally or by first class mail addressed to the address listed on the application, of the City Manager's determination and the right of the applicant to seek judicial review of the City Manager's determination. |
Step 5. Applicants who have successfully met the preliminary application requirements above, shall be deemed "qualified applicants" to be submitted to the City Council for affirmation of the qualified applicant list as described below. Each application that is in compliance with this chapter shall be placed on the "qualified applicant list" and the City Manager or designee shall notify the applicant in writing that it is a "qualified applicant." Once all preliminary applications are processed as described and in accordance with the preliminary application requirements specified in this section, the City Manager shall submit the qualified applicant list as an informational item to the City Council for affirmation. |
Step 6. After the City Council informational affirmation of the qualified applicant list, if there are more qualified applicants than available RSPs, the City shall hold an independent selection process in an open and public location and then issue all qualified applicants a number. The top numbered application chosen through the independent selection process will be placed on the "RSP eligibility list." The applicant on the RSP eligibility list may then choose to complete all requirements for an RSP pursuant to Section 4.60.090. The applicant identified on the RSP eligibility list following the independent selection process must obtain all necessary approvals and complete all conditions precedent listed in Section 4.60.090, within 12 months of notification. Failure to complete the requirements in Section 4.60.090 by that deadline will disqualify the applicant from the RSP eligibility list and the waitlist described below. |
Step 7. Qualified applicants will appear on the qualified applicant list in the order that they are selected during the independent selection process. This list is the waitlist. The waitlist will remain active until the applicant on the RSP eligibility list obtains its certificate of occupancy and final RSP. After the applicant on the RSP eligibility list obtains the certificate of occupancy and final RSP, the waitlist will be abolished and all applications on it will be null and void. |