Cal. Code Regs. Tit. 4, § 15003 - Owners of Commercial Cannabis Businesses
(a)
An applicant for a commercial cannabis license or a licensee shall disclose all
owners of the commercial cannabis business. An owner of the commercial cannabis
business includes all of the following:
(1) A
person with an aggregate ownership interest of 20 percent or more in the
commercial cannabis business, unless the interest is solely a security, lien,
or encumbrance. For purposes of this section, "aggregate" means the total
ownership interest held by a single person through any combination of
individually held ownership interests in a commercial cannabis business and
ownership interests in an entity that has an ownership interest in the same
commercial cannabis business. For example, a person who owns 10 percent of the
stock in a commercial cannabis business as an individual shareholder and 100
percent of the stock in an entity that owns 10 percent of the stock in the same
commercial cannabis business has a 20 percent aggregate ownership interest in
the commercial cannabis business.
(2) An individual who manages, directs, or
controls the operations of the commercial cannabis business, including but not
limited to:
(A) A member of the board of
directors of a nonprofit.
(B) A
general partner of a commercial cannabis business that is organized as a
partnership.
(C) A non-member
manager or managing member of a commercial cannabis business that is organized
as a limited liability company.
(D)
The trustee(s) and all persons who have control of the trust and/or the
commercial cannabis business that is held in trust.
(E) The chief executive officer, president or
their equivalent, or an officer, director, vice president, general manager or
their equivalent.
(b) If the commercial cannabis business is
owned in whole or in part by an entity and the entity includes individuals who
manage, direct, or control the operations of the commercial cannabis business,
as described in subsection (a)(2)(E), those individuals shall also be disclosed
as owners.
(c) If available
evidence indicates that an individual qualifies as an owner, the Department may
notify the applicant or licensee that they must either disclose the individual
as an owner and submit the information required by section
15002 or demonstrate that the
individual does not qualify as an owner.
Notes
2. Amendment of section heading and section filed 9-27-2021 as an emergency; operative 9-27-2021 (Register 2021, No. 40). This filing is a deemed emergency pursuant to Business and Professions Code sections 26013(b)(3) and 26153.1(k). A Certificate of Compliance must be transmitted to OAL by 3-28-2022 or emergency language will be repealed by operation of law on the following day.
3. Amendment of section heading and section refiled 3-28-2022 as an emergency; operative 3-28-2022 (Register 2022, No. 13). This filing is a deemed emergency pursuant to Business and Professions Code sections 26013(b)(3) and 26153.1(k). A Certificate of Compliance must be transmitted to OAL by 9-26-2022 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 3-28-2022 order transmitted to OAL 9-26-2022 and filed 11-7-2022 (Register 2022, No. 45).
Note: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26001 and 26012, Business and Professions Code.
2. Amendment of section heading and section filed 9-27-2021 as an emergency; operative
3. Amendment of section heading and section refiled 3-28-2022 as an emergency; operative
4. Certificate of Compliance as to 3-28-2022 order transmitted to OAL 9-26-2022 and filed
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