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that the permit shall not be granted and/or renewed, the reasons for denial shall be provided in writing to the applicant. No such denial shall become effective until the applicant for the regulatory safety permit and/or renewal has been notified in writing by certified mail of the right to appeal the denial decision pursuant to the provisions of Chapter 3 of this Code. If a timely appeal is filed, the denial shall be effective only upon decision of the City Council. Otherwise, the denial shall become effective after the timely appeal period has passed. The matter may be subject to judicial review under the provisions of California Code of Civil Procedure Sections 1094.5 and 1094.6. Section 40-9.1. Commercial Cannabis Testing Facility/Laboratory Selection Process. 1. Commercial Cannabis Testing Facilities/Laboratories — Registration Application (Phase 1) and Regulatory Safety Permit (Phase 2) Required a. Every Commercial Cannabis Testing Facility/Laboratory shall apply for the Phase 1 (Registration Application) and Phase 2 (Regulatory Safety Permit Application) in the manner described in Section 40-9, except that the Director of Planning and Building may accept Phase 1 and Phase 2 applications for a Commercial Cannabis Testing Facility/Laboratory concurrently, and shall review such applications and issue the Regulatory Safety Permit Application without consideration of the merit based point system, insofar as the applications satisfy all other requirements of this article and Chapter 18. b. Applications for a Commercial Cannabis Testing Facility/Laboratory shall be accepted during normal City Hall business hours and are not subject to the 30 -day Phase 1 or Phase 2 application periods. Section 40-10. Audits. Annual audits. No later than June 30th of every year, each licensed commercial cannabis business shall file with the City an audit or financial review of its operations of the previous calendar year. The form and contents of the document shall be specified by the Executive Director of Finance and Management Services, or his or her designee(s). Section 40-11. Inspection and enforcement responsibilities. The Code Enforcement Division of the Planning and Building Agency may enter and inspect the location of any commercial cannabis business between the hours of 7:00 a.m. and 10:00 p.m., or at any reasonable time, to ensure compliance with this article. In addition, any police officer may enter and inspect the location of any commercial cannabis business and the recordings and records maintained as required by this article, except that the inspection and copying of private medical records shall be made available to the police department only pursuant to a properly executed search warrant, subpoena, or court order. It is unlawful for any owner, responsible person, landlord, lessee, member including but not limited to a member engaged in the management), or any other person having any responsibility over the operation of the Ordinance No. NS -294.1 Page 22 of 32