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Cannabis Updates

Posted on: August 4, 2021

8/4/21 Cannabis FAQs Posted

Cannabis Webpage

Please see the Cannabis FAQs posted today, 8/4/21.  To see all FAQs click here.

 

Operating Hours for Retail

 

Question

What are the hours of operation for a retail store? In the code, it just refers to the business permit. Does this mean that when you apply for your business permit, you will suggest operating hours, and once those are certified by the City, that is when you will be permitted to operate?

 

There are no hours of operation specifications for retail stores, correct? I know delivery has 9-9. This would be negotiated during the permit process, correct? I know the State is 6am to 10pm...

 

Answer

At this time, the City defaults to what is permissible by State law (6 am – 10 pm).  However, the City Manager reserves the right to modify the hours in the permit which may be in the best interest of the community. 

 

Ownership Information

 

Question

CBP Application Page 3 states "Owner Information must be completed by all owners with a 5% ownership or more. The total ownership percentage should equal 100%." We have a 1% owner. Does this 1% owner need to be included on Page 4? 

 

Answer

Yes, you are required to list all individuals with 5% ownership or greater.  For those with less than 5%, you may make an annotation at the bottom of the page explaining how many owners make up the remaining %.  For example, if there is 5% left and 2 owners, indicate “2 owners share the remaining 5% ownership.”

 

LLCs

 

Question

Cannabis Business Permit Application Page 4 requires the percentage of ownership of the applicant. For our application, X% of ownership is owned by an LLC. Does this LLC need to be broken down to the individual level? 

 

Answer

Yes, when an entity with 5% or more is an owner in a commercial cannabis business, all entities and individuals with a financial interest in the entity shall be disclosed to the City and may be considered owners of the commercial cannabis business. For example, this includes all entities in a multi-layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust, and managing members or non-member managers of the entity. Each entity disclosed as having a financial interest must disclose the identities of persons holding financial interests until only individuals remain. Therefore, any individual in the LLC which owns more than 5% or more in the ownership will be required to be listed and subject to a background.

 

Question

Financial Responsibility F-3 does not contain a print name and title for individuals signing on behalf of LLC's.  How should we indicate that the person signing the document is signing on behalf of the LLC? For example: including their name and title? If yes, where should we put that information since there is no existing spot.  Do we need to add under the signature block lines for print name and title for the individuals that are signing on behalf of LLC?

 

Answer

Yes, add a signature block for those signing on behalf of an LLC or you may include it on a Word document as an additional attachment.

 

Building Use

 

Question

Our client was wondering if they could serve coffee to customers when they are waiting in the front lounge/waiting room to enter the dispensary.

 

Could part of the space in the future be a small coffee shop if it would be separate from the dispensary, but you would enter through it before going into the dispensary.

 

Answer

It depends on what is meant by “serve coffee”. Per State law, “In addition to cannabis goods, a licensed retailer may sell only cannabis accessories and licensee’s branded merchandise.” Therefore, coffee could not be sold to customers. However, if the coffee is complementary for its customers, there does not appear to be a restriction, so long as all other local, state, and federal laws and regulations are complied with, including any health department requirements. The City does not allow public consumption so a public consumption lounge would not be permissible.

 

Safety Plan

 

Question

I'm trying to find out what the code interpretation is as it pertains to design of fire safety evacuation and emergency action plan. Some literature indicates an "approved, California state designer." I'm looking for more clarity on this and whether a fire protection engineer in mandatory or can I hire someone with fire department background to design the plans? 

 

Answer

Yes, the Evaluation Criteria in the Appendix A requires the Safety Plan be “prepared by a professional fire prevention and suppression consultant.”  An Individual with a fire department background is acceptable as long their qualifications are described.  

 

Question

For the application submittal requirements, are you able to confirm that the following documents do not need to be printed and submitted in hard copy format (eg, in a physical binder)?

  1. PDF File #2 (the Responses to Appendix A);
  2. PDF File #3 (background check docs);
  3. PDF File #4 (proof of capitalization);
  4. PDF File #5 (ZVL);
  5. PDF File #6 (property owner consent form, lease agreement)

 

Are you able to confirm that the ONLY documents that need to be submitted in hardcopy format (eg, in a physical binder) are:

  1. City of Ventura Cannabis Business Permit Application (pages 1-3);
  2. Financial Responsibility, Indemnity and Consent to Inspection Terms form (FI-F3);
  3. Agreement on Limitations of City’s Liability (pages F4-F6); AND
  4. Ownership Acknowledgement Form

 

Are you also able to confirm that the Lease Agreement is NOT counted against the 200 pages? (I know it says the Property Owner Consent form is not, but it doesn’t specifically state the Lease).

 

Answer

The requirements as outlined above are correct.

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