§ 1606. APPLICATIONS FOR CANNABIS BUSINESS PERMITS.

(a) Except as provided in subsection (b) of this Section 1606, the Director shall issue Cannabis Business Permits only to Applicants that meet one or more of the following criteria:

(1) Qualify as an Equity Applicant or an Equity Incubator;

(2) Possess a valid permit to operate a Medical Cannabis Dispensary issued pursuant to Article 33 of the Health Code prior to the effective date of the ordinance, in Board File Number 171042, establishing this Article 16;

(3) Were issued a Temporary Cannabis Business Permit under Section 1605 of this Article 16;

(4) Have demonstrated to the Director’s satisfaction that the Applicant operated in compliance with the Compassionate Use Act of 1996, and was forced to discontinue operations as a result of federal prosecution or threat of federal prosecution;

(5) Applied for a Medical Cannabis Dispensary Permit that required referral to and approval by the Planning Commission, and received approval from the Planning Commission prior to the effective date of the ordinance, in Board File Number 171042, establishing this Article 16;

(6) Registered with the Office of Cannabis as a Pre-Existing Non-Conforming Operator, as set forth in subsection (k) of Section 1605 of this Article 16; or

(7) Possessed a valid permit to operate a Medical Cannabis Dispensary, issued under Article 33 of the Health Code prior to January 6, 2018, or a valid Temporary Cannabis Business Permit, issued under Section 1605(d), but were forced to discontinue operations due to the termination of a lease, provided that:

(A) The lease terminated before December 31, 2018;

(B) The lease termination was not due to the lessee’s breach of the lease;

(C) The Owner of the proposed Cannabis Business is identical to the Owner of the former Medical Cannabis Dispensary; and

(D) The Permittee seeks an application for a Cannabis Business Permit no later than July 1, 2019.

(b) The Director may award a Cannabis Business Permit to an Applicant that does not meet the criteria set forth in subsection (a) of this Section 1606 if the total number of Cannabis Business Permits awarded to Equity Applicants in the permit category sought by the Applicant has reached 50% of the total number of Cannabis Business Permits awarded in that permit category.

(c) The Office of Cannabis shall review and process applications for Cannabis Business Permits in an order that reflects the Applicant’s priority category:

(1) First priority: applications from Equity Applicants;

(2) Second priority: applications from Equity Incubators;

(3) Third priority: applications from Applicants that meet the requirements of Section 1606(a)(4) or 1606(a)(6).

(4) Fourth priority: applications from Applicants that were operating in compliance with the Compassionate Use Act of 1996 before September 1, 2016 or that meet the requirements of Section 1606(a)(5), or that hold Temporary Cannabis Business Permits under Section 1605(d);

(5) Fifth priority: applications that demonstrate a commitment on the part of the Applicant to provide benefits to the community in which the Cannabis Business is located, including but not limited to workforce opportunities and community benefits contributions; and

(6) Sixth priority: all other applications.

(d) Each Owner Treated as Applicant. Unless this Article 16 specifically provides otherwise, each Owner of a Cannabis Business or proposed Cannabis Business shall be subject to the same obligations that this Article 16 imposes on an Applicant. Such obligations include, but are not limited to, the obligation to provide to the Director the information that this Article 16, and any regulations promulgated thereunder, require from an Applicant.

(Added by Ord. , File No. 171042, App. 12/6/2017, Eff. 1/5/2018; amended by Ord. , File No. 180912, App. 12/21/2018, Eff. 1/21/2019; Ord. , File No. 191174, App. 12/20/2019, Eff. 1/20/2020)