Item 09 - Agreement for Business License Tax and Fee Software Services

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(b) Extension of Time. If, upon request and in the judgment of the collector, a determination of any commercial cannabis business' estimated average monthly tax liability for purposes of setting the amount of their required security deposit requires an extension of time beyond one hundred and twenty (120) days following the last day of the month in which business was first commenced, then the collector may issue a written notification to such commercial cannabis business granting such extension. (c) Application of Security Deposit. To recover past -due business license taxes, including penalties, interest, charges, fees, or costs (hereinafter collectively referred to as business license tax liabilities) remittable by the depositor, the collector may apply the security deposited with the collector. At least fifteen (15) days prior to the application of a security deposit, the collector shall serve upon the depositing commercial cannabis business owner/operator notice of intent to apply the security deposit. Service of notice may be made by placing the notice in the United States mail, postage prepaid, addressed to the depositing commercial cannabis business owner/operator at their place of business or other mailing address of record. Any portion of the security remaining after satisfaction of outstanding business license tax liabilities and any expenses related to third -party administrative charges or fees relating to the liquidation and application of non -cash deposits may be retained by the collector for security or in the case of a closeout audit may be paid over by the collector to the depositing owner/operator. Except in the case of a closeout audit pursuant to section 21- 141, in the event the collector applies the security deposit, or any portion of said deposit, as an offset against remittable business license tax liabilities and any expenses related to third -party administrative charges or fees relating to the liquidation and application of non -cash deposits, the commercial cannabis business owner/operator shall be required within thirty (30) days of the collector's written demand therefor, to re - deposit the full amount of the required security. In such event the amount of the required security shall be adjusted by the collector based on the average of the commercial cannabis business' actual monthly gross receipts tax returns and/or remittances as measured over the last three (3) valid monthly returns and/or remittances received by the collector or the sum of ten thousand dollars ($10,000), whichever is least, less any amount remaining on deposit with the collector. Service of demand shall be in the same manner as stated hereinabove for service of notice. (d) Failure to Post or Restore Security Deposit —Effect. Failure by a commercial cannabis business licensee to initially post or restore a security deposit when required by the collector pursuant to this section shall be cause for suspension and/or revocation of such commercial cannabis business' existing Santa Ana Business License as set out in section 21-86 of this Chapter. Similarly, in the case of a vertically and/or horizontally integrated cannabis business, the business license(s) of the integrated commercial cannabis business(es) shall be likewise subject to suspension and/or revocation. (e) Jeopardy Determination. If the collector believes that the collection of any business license tax imposed by this Article will be jeopardized, in whole or in part, by delay in the commercial cannabis business owner's/operator's timely remittance of the business license tax, the collector shall serve notice upon the person determined to be liable therefor of their determination of jeopardy and of the business license tax required to be paid to the City, and demand immediate payment thereof, together with any interest and penalty determined to be due. The collector may consider all facts and circumstances relevant to determining whether the collection of any business license tax will be jeopardized by delay, including, but not limited to, indications that the person liable for the business license tax intends to take or is taking action to discontinue business activities in the City, dissipate or otherwise remove assets from the City, or sell, exchange, transfer, assign, or otherwise dispose of such person's business, personal or business income, or business property. The collector also may consider whether the person liable for the business license tax is or has been uncooperative or unresponsive in connection with any investigation, examination, audit, deficiency determination, assessment, or collection action or procedure undertaken by the collector. Ajeopardy determination of business license tax, penalty, or interest, is immediately due and payable upon the service of the notice of jeopardy determination on the person determined to be liable therefor. Service of notice of a jeopardy determination shall be made by: (1) sending the notice initially by electronic mail to the depositing commercial cannabis business owner's/operator's electronic mail address of record as set out in the City of Santa Ana RFP No. 23-165 Page 149 of 196