(1) An owner of a retail cannabis business permit shall not transfer ownership or control of such permit to another person unless and until the permittee and transferee obtain an amendment to the permit from the city manager stating that the transferee is now an owner of the permittee. A permittee may change the ownership specified in a retail cannabis business permit upon submission and approval of a change in ownership application promulgated, as a ministerial duty, by the city manager pursuant to regulations adopted under CMC 5.30.210 within 180 days following the effective date of this chapter. The permittee shall pay an application fee established by resolution of the city council to cover all costs incurred by the city in the review and processing of change in ownership applications. The city manager shall process such change in ownership applications as a ministerial duty within five business days once the city manager reasonably determines that the transferee passed the background check required for owners and meets all other requirements of this chapter.

(2) Notwithstanding subsection (1) of this section, during the first three years following the issuance of a retail cannabis business permit, the city manager shall not process any application to change the ownership or control of a commercial cannabis business permit that results in the permittee altering its ownership composition in a manner that would result in the permittee not being entitled to points it was awarded when the permittee was an applicant pursuant to CMC 5.30.070. For example, if a permittee received 100 points when it was an applicant for providing documentation that the individual or natural person owner or owners of the applicant (disregarding any intervening or intermediary entity owner or owners of the applicant) with an aggregate ownership interest of 90 percent or more have entered into a collective bargaining agreement with a labor organization that currently represents cannabis workers in the United States effective since at least July 1, 2021, inclusive of renewals (and remaining effective, inclusive of renewals, on the date of the application submission under this section), the city manager shall not process or authorize any change in ownership or control of the permittee if the change would result in the permittee being unable to continue to satisfy the aforementioned criteria subsequent to its approval.

(3) Notwithstanding subsection (1) of this section, no retail cannabis business permit may be transferred when the city manager has notified the permittee that its retail cannabis business permit has been or may be suspended or revoked.

(4) Any attempt to transfer a retail cannabis business permit either directly or indirectly in violation of this section is hereby declared void, and such an unpermitted transfer shall be deemed a ground for revocation of the permit. (Ord. 730 § 5, 2022).