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HomeMy WebLinkAboutOrd 870 ORDINANCE NO. 870 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY AMENDING SECTIONS 5.88.040 AND 5.88.055 OF THE CATHEDRAL CITY MUNICIPAL CODE RELATED TO CANNABIS BUSINESS LICENSE EXPIRATION AND RENEWALS WHEREAS, the City of Cathedral City has allowed a wide range of cannabis businesses to operate within the City, subject to licensing and other regulatory requirements, since Proposition 64 legalized medicinal and adult-use cannabis; and WHEREAS, the City desires to update its local regulations to address business license operations to curtail the practice of holding and renewing a license for a cannabis business that is not in operation. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1 AMENDMENT OF SECTION 5.88.055 (RENEWAL OF A LOCAL LICENSE) Section 5.88.055 (Renewal of a local license) is amended in its entirety to read as follows, with additions underlined and deletions struck-through. "A. A cannabis business that desires to renew its license shall apply for the renewal no less than thirty days prior to the local license's expiration date. If the cannabis business files a renewal application within thirty days prior to expiration, the cannabis business must provide a written explanation detailing the circumstances surrounding the late filing. The local licensing authority may accept or reject such late filing in its discretion. The local licensing authority may elect to administratively continue a local license past its expiration date, provided that the licensee has submitted a renewal application that is pending final action. B. An application for renewal shall be submitted on forms provided by the local licensing authority, accompanied by the processing fee established by resolution of the city council. The following information shall be submitted as a part of the renewal application: 1. A current list of the employees, independent contractors, and volunteers working at the licensed premises. 2. Proof that no changes to the ownership of the licensee have occurred since last approved by the local licensing authority. 3. Proof that the licensee is still entitled to the possession and use of the licensed premises. -1- RIV#4889-3092-9927 vl 4. For dispensaries, proof that commercial cannabis activity is occurring on the premises in accordance with the following: a. For a first renewal application, proof that commercial cannabis activity permitted by the license has been occurring on the premises for the previous month. A tax return submitted pursuant to Section 3.48.080 of this code showing that taxable commercial cannabis activity occurred on the premises shall be sufficient proof. b. For a second and subsequent renewal application, proof that commercial cannabis activity permitted by the license has been occurring on the premises for the previous twelve (12) consecutive months. Tax returns submitted pursuant to Section 3.48.080 of this code showing that taxable commercial cannabis activity occurred on the premises shall be sufficient proof. c. The local licensing authority may renew a license not meeting the requirements of subparagraphs a or b above if the renewal application demonstrates unique or extraordinary circumstances that has impacted the ability of the cannabis business to conduct commercial cannabis activity on the premises, including but not limited to fire, flood or other act of god resulting in substantial damage to the premises, or a delay in the issuance of necessary licenses, permits or other approvals necessary to conduct the commercial cannabis activity at no fault of the applicant. 5. For licensees that have ten or more full-time equivalent non-supervisorial employees, proof that the licensee has entered into and abided by the terms of a labor peace agreement. 6. Proof that the cannabis business is not delinquent on the submission of any tax returns or the payment of any taxes due under Chapter 3.48 of this code. 7. Any other information that the local licensing authority deems necessary to determine whether to renew the local license. C. All owners of the cannabis business must be fingerprinted each year at renewal if required in the discretion of the local licensing authority. D. The local licensing authority shall renew a local license if the licensee has submitted a complete application and paid the application processing fee, unless the local licensing authority finds that good cause exists to deny the license renewal. E. Unless administratively continued pursuant to subsection A, a local license is immediately invalid upon expiration and the cannabis business shall cease operations. If a local license expires, the local licensing authority may approve a renewal of the expired license at any time up to three months from the expiration date of the license. After the license has been expired for three months, the license may not be renewed by the local licensing authority, and the holder of the expired license must apply for and obtain a new cannabis license to resume operations." -2- RIV#4889-3092-9927 vi SECTION 2 AMENDMENT OF SECTION 5.88.040 (LOCAL LICENSE APPLICATION PROCESS) Paragraph H of Section 5.88.040 (Local License Application Process) is amended to read as follows, with additions underlined and deletions struck-through. "H. A local license issued pursuant to this chapter shall specify the date of issuance, the period of licensure, the name of the licensee, the address of the licensed premises, and the nature of the cannabis business licensed. All local licenses are valid for one year, except that an initial local license shall automatically expire if the commercial cannabis activities authorized by the license have not commenced at the premises within eleven (11) months of the date of issuance. If the licensee has not submitted a tax return pursuant to Section 3.48.080 of this code showing that commercial cannabis activity is occurring on the premises before the start of the twelfth (12th) month of the license term, the City will notify the licensee in writing that their license has been rendered null and void due to the failure to commence commercial cannabis activity. The licensee is not precluded from applying for a new cannabis license except as provided in Section 5.88.040(A)." SECTION 3 SEVERABILITY The City Council declares that, should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in full force and effect. SECTION 4 EFFECTIVE DATE This Ordinance shall take effect on January 1, 2024. SECTION 5 POSTING The City Clerk shall, within fifteen (15) days after passage of this Ordinance, cause it to be posted in at least three (3) designated public places; shall certify to the adoption and posting of this Ordinance; and shall cause this Ordinance and its certification, together with proof of posting, to be entered in the Book of Ordinances of this City. SECTION 5 CERTIFICATION The foregoing Ordinance was approved and adopted at a meeting of the City Council held on the 28th day of June 2023, by the following vote: Ayes: Councilmembers Gutierrez, Gregory and Ross; Mayor Pro Tem Carnevale and Mayor Lamb Noes: None -3- RIV#4889-3092-9927 vl Abstain: Absent: Rita amb, Mayor ATTEST: Tracey Heimosillo, City Clerk APPROVED AS TO FORM: Eric S. il, City Attorney -4- RIV#4889-3092-9927 vl