Chapter 5.43
CANNABIS BUSINESSES
Sections:
5.43.030 Liquor and Cannabis Board license – Condition precedent.
5.43.040 Cannabis business license.
5.43.060 Effect of license denial.
5.43.080 License term, assignment and renewals.
5.43.090 License suspension and revocation.
5.43.100 Standards of conduct for cannabis businesses.
5.43.110 Hours of operation for cannabis retailers.
5.43.010 Definitions.
As used in this chapter, the following words and phrases shall have the following meanings unless the context clearly requires otherwise:
A. “Applicant” means any person or business entity who is considered by the Washington State Liquor and Cannabis Board as a true party of interest in a cannabis license, as set forth in WAC 314-55-035.
B. “Cannabis” means cannabis as defined in RCW 69.50.101.
C. “Cannabis producer” means a cannabis producer as defined in RCW 69.50.101.
D. “Cannabis processor” means a cannabis processor as defined in RCW 69.50.101.
E. “Cannabis retailer” means a cannabis retailer as defined in RCW 69.50.101.
F. “Cannabis researcher” means a cannabis researcher as defined in RCW 69.50.101.
G. “Cannabis business” means a cannabis producer, cannabis processor, cannabis researcher, or cannabis retailer. “Cannabis business” does not include a cannabis cooperative as described in Chapter 69.51A RCW.
H. “Cannabis license” means a license issued by the Liquor and Cannabis Board for a cannabis producer, cannabis processor, cannabis researcher, or cannabis retailer.
I. “Cannabis business license” means a business license issued by the City pursuant to this chapter.
J. “Person” has the same meaning as the definition of “person,” firm,” or “corporation” in KMC 5.105.020.
K. “Liquor and Cannabis Board” means the Washington State Liquor and Cannabis Board. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.020 License required.
A. It shall be unlawful for any person to conduct, manage or operate a cannabis business unless such person is the holder of a valid and subsisting license from the City to do so, obtained in the manner provided in this chapter.
B. It shall be unlawful for any employee or manager to knowingly work in or about, or to knowingly perform any service directly related to the operation of, an unlicensed cannabis business. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.030 Liquor and Cannabis Board license – Condition precedent.
The City shall process an application for a cannabis business license in accordance with this chapter after the applicant receives a cannabis business license from the Liquor and Cannabis Board. No license shall be issued to any person who does not hold a valid cannabis license from the Liquor and Cannabis Board. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.040 Cannabis business license.
A. After receiving a license from the Liquor and Cannabis Board, an applicant may file a written application with the city manager, on a form provided by the city manager for that purpose, in the name of the person or entity that was issued the license. A failure to provide all information required on the form will constitute an incomplete application and the application will not be processed. The application form shall require the following information of the applicant:
1. The name of the applicant; business, mailing, and residential addresses; and business telephone number.
2. The type of applicant, as described in WAC 314-55-035.
3. Whether the applicant, or any partner, corporate officer, or director of the applicant, holds any other licenses under this chapter from the City or another city, county or state, and if so, the names and addresses of each other licensed business.
4. A summary of the business history of the applicant in owning or operating cannabis businesses, providing names, addresses and dates of operation for such businesses, and whether any Liquor and Cannabis Board license or other business license has been revoked or suspended, and the reason therefor.
5. A copy of the completed personal/criminal history form and fingerprints submitted to the Liquor and Cannabis Board for the Liquor and Cannabis Board license application, together with the results of the Liquor and Cannabis Board’s criminal history check on the applicant.
6. A copy of the operating plan submitted to the Liquor and Cannabis Board in connection with the license application, and any amendments thereto, and the license issued by the Liquor and Cannabis Board.
7. Authorization for the City, its officers, employees and agents to seek information to confirm any information and documents in the application.
8. The location and “doing-business-as” name of the cannabis business, including a legal description of the property, street address, and telephone number, together with the name and address of each owner and lessee of the property, if not the applicant.
9. Two two-inch by two-inch color photographs of the applicant and applicant control persons, taken within six months of the date of application showing only the full face.
B. An application shall be deemed complete upon the applicant’s submittal of all information and documents described above, including identification of “none” where that is the correct response, and the applicant’s verification that the application is complete. The city manager may request other information or clarification in addition to that provided in a complete application where necessary to determine compliance with this chapter.
C. A nonrefundable application fee (see KMC 5.05.050) must be paid at the time of filing an application.
D. All applications shall be signed by the applicant and notarized or certified as true under penalty of perjury.
E. If any person or entity acquires, subsequent to the issuance of a cannabis business license, a significant interest based on responsibility for management or operation of the licensed premises or the licensed business, notice of such acquisition shall be provided in writing to the city manager, no later than 21 days following such acquisition. The notice required shall include the information required for the original cannabis business license application.
F. The cannabis business license, if granted, shall state on its face the name of the person or entity, or persons or entities, to whom it is issued, the expiration date, the “doing-business-as” name, and the address of the licensed cannabis business. The permit shall be posted in a conspicuous place at or near the entrance to the cannabis business so that it can be easily read at any time the business is open.
G. No person granted a cannabis business license pursuant to this chapter shall operate the cannabis business under a name not specified on the license, nor shall any person operate a cannabis business under any designation or at any location not specified on the license.
H. Upon receipt of the complete application and fee, the city manager shall provide copies to the appropriate city departments for their investigation and review to determine compliance of the proposed cannabis business with the laws and regulations which each department administers. Each department shall, within 20 days of the date of such application, inspect the application and premises and shall make a written report to the city manager regarding compliance of such application and premises with the laws administered by each department. A department shall recommend denial of a license under this subsection if it finds that the proposed cannabis business is not in conformance with the requirements of this chapter or other law in effect in the City. A recommendation for denial shall cite the specific reason therefor, including reference to applicable laws. The city manager shall not issue a cannabis business license unless and until each department reports that the application and premises comply with the relevant laws, unless the 20-day period has lapsed. If the premises is not yet constructed, the departments shall base their recommendation as to premises compliance on their review of the drawings submitted in the application. Any cannabis business license approved prior to premises construction shall contain a condition that the premises may not open for business until the premises have been inspected and determined to be in substantial conformance with the drawings submitted with the application.
I. A cannabis business license shall be issued by the city manager within 30 days of the filing of a complete license application and the application fee, unless the city manager determines that the applicant has failed to meet any of the requirements of this chapter, that the applicant has failed to provide any information required under this section, or that the applicant has made a false, misleading or fraudulent statement of material fact on the application. The city manager shall grant an extension of time in which to provide all information required for a complete license application upon the request of the applicant. If the city manager finds that the applicant has failed to meet any of the requirements for issuance of a cannabis business license, the city manager shall deny the application in writing and shall cite the specific reasons therefor, including applicable law. If the city manager fails to issue or deny the license within 30 days of the date of filing of a complete application and the application fee, the applicant shall be permitted, subject to all other applicable law, to operate the business for which the license was sought until notification by the city manager that the license has been denied, but in no event may the city manager extend the application review time for more than an additional 20 days. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.050 Marijuana business license fee.
Repealed by Ord. 15-0402. [Ord. 14-0384 § 8.]
5.43.060 Effect of license denial.
If the City denies a cannabis business license, the City shall not issue a cannabis business license to that applicant, or the applicant’s successor on the cannabis licenses, for a period of one year from the date of such denial. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.070 Appeal.
A. Any person aggrieved by the action of the city manager in refusing to issue or renew any license issued under this chapter shall have the right to appeal such action to the hearing examiner by filing a notice of appeal with the city manager within 21 days of notice of the refusal to issue or renew. The decision of the city manager shall be stayed pending the final outcome of any such timely appeal. The appeal shall be processed under KMC 5.05.150 and Chapter 19.30 KMC.
B. Any person aggrieved by the decision of the hearing examiner may appeal to the superior court for a writ of certiorari, prohibition or mandamus. The decision of the hearing examiner shall be stayed pending the final outcome of any such timely appeal. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.080 License term, assignment and renewals.
A. The cannabis business license is valid for one year and shall be renewed annually. The city manager shall have the authority to adjust the expiration date and to prorate the license fee of the license in order to coincide with cannabis license expiration dates. Cannabis business licenses issued under this chapter shall not be assignable.
B. Application for renewal of cannabis business licenses issued hereunder shall be made to the city manager no later than 30 days prior to the expiration of cannabis business licenses. The renewal license shall be issued in the same manner and on payment of the same fees as for an original application under this chapter. There shall be assessed and collected by the city manager an additional charge, computed as a percentage of the cannabis business license fee, on applications not made on or before said date, as follows:
|
Days Past Due |
Percent of License Fee |
|---|---|
|
7 – 30 |
25% |
|
31 – 60 |
50% |
|
61 and over |
75% |
C. The city manager shall renew a license upon application if it complies with all provisions of this chapter, as now enacted or as the same may hereafter be amended; provided, that the city manager may deny a renewal where the city manager is aware of facts that would disqualify the applicant from being issued a cannabis business license. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.090 License suspension and revocation.
A. The city manager may, upon the recommendation of the chief of police or designee, and as provided in subsection B of this section, suspend or revoke any cannabis business license issued under the provisions of this chapter:
1. Where the license was procured by fraud or false representation of fact;
2. For violation of, or failure to comply with, this chapter, this code, or similar local or state law by the licensee, or by any of the licensee’s servants, agents or employees, when the licensee knew or should have known of the violations committed by such servants, agents or employees;
3. For conviction of the licensee of any crime or offense involving transactions involving controlled substances (as that term is defined in Chapter 69.50 RCW) committed on the premises, or the conviction of any of licensee’s servants, agents or employees of any crime or offense involving transactions involving controlled substances (as that term is defined in Chapter 69.50 RCW) committed on the premises in which the cannabis business is conducted when the licensee knew or should have known of the violations committed by such servants, agents or employees.
B. A license procured by fraud or misrepresentation shall be revoked permanently for the licensee and licensee’s successors on the cannabis license. Where other violations of this chapter or other applicable ordinances, statutes or regulations are found, the license shall be suspended for a period of 30 days upon the first such violation, 90 days upon the second violation within a 24-month period, and revoked for third and subsequent violations within a 24-month period, not including periods of suspension.
C. The city manager shall provide at least 10 days’ prior written notice to the licensee of the decision to suspend or revoke the license. Such notice shall inform the licensee of the right to appeal the decision to the hearing examiner or other designated hearing body and shall state the effective date of such revocation or suspension and the grounds for revocation or suspension. Such appeals shall be processed under KMC 5.05.150 and Chapter 19.30 KMC. The decision of the city manager shall be stayed during the pendency of any appeal except as provided in subsection D of this section.
D. Where the city building official or fire marshal, or their designees, or the King County health department finds that any condition exists upon the premises of a cannabis business which constitutes a threat of immediate serious injury or damage to persons or property, the official may immediately suspend any license issued under this chapter pending a hearing in accordance with subsection C of this section. The official shall issue a notice setting forth the basis for the action and the facts that constitute a threat of immediate serious injury or damage to persons or property, and informing the licensee of the right to appeal the suspension to the hearing examiner or other designated hearing body under the same appeal provisions set forth in subsection C of this section; provided, that a suspension based on threat of immediate serious injury or damage shall not be stayed during the pendency of the appeal. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.100 Standards of conduct for cannabis businesses.
Cannabis businesses shall conform to the rules of Chapter 314-55 WAC, applicable State laws relating to cannabis businesses, and KMC Title 18. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.110 Hours of operation for cannabis retailers.
A cannabis retailer may be open for business only between the hours of 8:00 a.m. and 10:00 p.m. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]
5.43.120 Insurance.
The licensee shall maintain the insurance coverage of WAC 314-55-082 during the term of the cannabis business license, and shall name the City as an additional insured on the insurance policies. The policies shall be primary to any City insurance policies and the licensee’s insurance policies shall state this requirement. [Ord. 24-0607 § 2 (Exh. A(I)); Ord. 16-0421 § 2 (Att. A); Ord. 15-0402 § 1 (Att. A); Ord. 14-0384 § 8.]