A. Any time the number of valid permits (counted as set forth in Section 5.80.180) is less than the maximum number allowed, the regulatory administrator may designate a “lottery window” which shall be no less than one month in duration.

B. Prior to the commencement of the lottery window the regulatory administrator shall cause an announcement of the lottery window to be published in a newspaper of general circulation that is circulated in Marina and to be mailed to any person who has, during the two years prior to the date on which such notification is published, filed with the regulatory administrator a request for mailed notification pursuant to this subsection.

C. The regulatory administrator shall accept preapplications only during the lottery window. Each preapplication must be submitted on behalf of a specific person who wishes to receive a permit to conduct a commercial cannabis business in the city, and must designate a natural person who will serve as the principal owner of the commercial cannabis business.

D. No person may submit more than one preapplication during a lottery window for each type of permit, nor can an individual be listed as principal owner on more than one preapplication submitted during a lottery window for each type of permit.

E. Preapplications shall be submitted on a form designed by the regulatory administrator. The regulatory administrator shall reject any preapplication that is not complete or does not comply with regulations issued by the regulatory administrator prior to the commencement of the lottery window.

F. Following the close of the lottery window, the regulatory administrator shall select at random one preapplication for each permit announced pursuant to subsection B of this section.

G. Before conducting the selection pursuant to subsection E of this section, the regulatory administrator may require that each person applying for a permit and each person listed as a principal owner obtain a background clearance or some other, less comprehensive, background investigation as the regulatory administrator may instead require.

H. The regulatory administrator may invalidate a selection conducted pursuant to subsection E of this section and call for a new lottery window requiring new applications, if he or she reasonably determines that the selected preapplication was submitted fraudulently or that the selected preapplicant or principal owner appears to be a “straw man” for a person submitting a nonselected preapplication.

I. The regulatory administrator shall accept an application for a new permit pursuant to Section 5.80.200 (other than an application that includes a commitment to cease existing operations pursuant to Section 5.80.170) only from a person who submitted a selected preapplication. Once a preapplication has been selected, that preapplication shall count as a “valid permit” for purposes of any limitation on the number of permits that may be issued pursuant to Section 5.80.090. The preapplication shall expire six months from its selection. The expiration date may be extended by the regulatory administrator for two months, if (at the time of expiration or the expiration of an extension) the regulatory administrator determines that an application has been submitted and is being processed by the city.

J. The city council may, by resolution, establish a preapplication fee which must be paid at the time a preapplication is submitted to the regulatory administrator and may require that each preapplication be accompanied by a deposit against fees that can be expected to be incurred by the preapplicant in connection with the application process if the preapplicant is selected. (Ord. 2020-08 § 3, 2020)