935 CMR, § 501.104 - Notification and Approval of Changes
(1) Prior to making the following changes, an
MTC shall submit a request for such change to the Commission and pay the
appropriate fee. No such change shall be permitted until approved by the
Commission or in certain cases, the Commission has delegated authority to
approve changes to the Executive Director. Failure to obtain approval of such
changes may result in a License being suspended, revoked, or deemed void.
(a)
Location Change.
Prior to changing its location, the MTC shall submit a request for such change
to the Commission.
(b)
Ownership or Control Change.
1.
Ownership Change.
Prior to any change in ownership, where an Equity Holder acquires or increases
its ownership to 10% or more of the equity or contributes 10% or more of the
initial capital to operate the MTC, including capital that is in the form of
land or buildings, the MTC shall submit a request for such change to the
Commission.
2.
Control
Change. Prior to any change in control, where a new Person or
Entity Having Direct or Indirect Control should be added to the License , the
MTC shall submit a request for such change to the Commission prior to
effectuating such a change. An individual, corporation, or entity shall be
determined to be in a position to control the decision-making of an MTC if the
individual, corporation, or entity falls within the definition of Person or
Entity Having Direct or Indirect Control.
(c)
Structural
Change. Prior to any modification, remodeling, expansion,
reduction or other physical, non-cosmetic alteration of the MTC, the
establishment shall submit a request for such change to the
Commission.
(d)
Name
Change. Prior to changing its name, the MTC shall submit a request
for such change to the Commission. Name change requests, and prior approval,
shall apply to an establishment proposing a new or amending a current
doing-business-as name.
(e)
Court Supervised Proceedings. Notification and
approval requirements with respect to Court Appointees and Court Supervised
Proceedings are detailed in
935
CMR 501.104(3).
(2) The Executive Director of the
Commission may approve, provided the Executive Director gives the Commission
timely notice of his or her decision:
(a) A
Location Change;
(b) A Name
Change;
(c) Any new equity owner ,
provided that the equity acquired is below 10%;
(d) Any new Executive or Director, provided
that the equity acquired is below 10%;
(e) A reorganization, provided that the
ownership and their equity does not change; and
(f) Court Appointees, as detailed in
935
CMR
501.104(3).
(3)
Court Supervised
Proceedings.
(a)
Commission Petition.
1. The Commission or its delegee may seek to
file a petition where there is an imminent threat or danger to the public
health, safety or welfare, which may include one or more of the following:
a. Notice of violations of state or federal
criminal statutes including, but not limited to, M.G.L. c. 94C, §§ 32
and 34;
b. Noncompliance with or
violations of its statute or regulations such that the imposition of fines or
other disciplinary actions would not be sufficient to protect the
public;
c. Conditions that pose a
substantial risk of diversion of Marijuana or Marijuana Products to the illicit
market or to individuals younger than 21 years of age who do not possess a
valid pediatric Patient Registration Card issued by the Commission;
d. Conditions that pose a substantial risk to
Patients;
e. Violations of testing
or inventory and transfer requirements such that the Commission cannot readily
monitor Marijuana and Marijuana Products cultivated, manufactured, transported,
delivered, transfer , or sold by a Licensee ; or
f. Other circumstance that the Commission or
its delegee determines possess an imminent threat or danger to public health,
safety, or welfare exists.
2. The Commission or its delegee may seek to
file a petition, intervene, or otherwise participate in a Court Supervised
Proceeding or any other proceeding to secure its rights under M.G.L. c. 94G,
§ 19.
3. Nothing in
935
CMR 501.104(3) shall limit
the Commission's authority under M.G.L. c. 94G, § 4(a)(v).
(b)
Delegation. In accordance with M.G.L. c. 10, §
76(j), the Commission may delegate to the Executive Director the authority to
appear on its behalf in Court Supervised Proceedings or any other proceeding,
and to administer and enforce its regulations relative to such proceedings or
Court Appointees which includes, but it not limited to, the following:
1. To determine the form and manner of the
application process for a Preapproved Court Appointee ;
2. To preapprove, recommend, disqualify, or
discipline Court Appointees;
3. To
approve the distribution of escrow funds under
935
CMR 501.105(10) or bond
funds under
935
CMR 501.105(16) including,
but not limited to, to cover the cost of a Court Appointee or the operations of
an MTC under supervision subject to the receipt of a court order prior to the
expenditure of such funds;
4. To
approve the use of additional funds subject to the receipt of a court order
prior to the expenditure of such funds;
5. To preapprove or approve certain
transactions; provided, however, any change in the ownership or control under
935
CMR 501.104(1) shall be
considered by the Commission; or
(c)
Notice to the Commission.
1. A Licensee or Person or Entity Having
Direct or Indirect Control over a Licensee shall provide notice to the
Commission of a petition or Court Supervised Proceeding or any other proceeding
implicating
935 CMR
501.000:
a. Five
business days prior to the Licensee or Person or Entity Having Direct or
Indirect Control filing a petition; or
b. On receipt of notice that a petition was
filed or of an imminent threat of litigation that could lead to the appointment
of a Court Appointee .
2.
Notice to the Commission shall include a copy of the relevant communications,
petition, pleadings and supporting documents, and shall be sent electronically
to Commission@CCCMass.Com and by mail to the Cannabis Control Commission at:
ATTN: General Counsel -
Union Station
2 Washington Square
Worcester, MA 01604
3. As soon as practicable, the Licensee or
Person or Entity Having Direct or Indirect Control over a Licensee shall
provide electronic and written notice to the Commission if the circumstances
giving rise to the petition pose or may pose a threat to the public health,
safety or welfare.
4. As soon as
practicable, the Licensee or Person or Entity Having Direct or Indirect Control
over a Licensee shall provide notice to the court that it is licensed by the
Commission and of the regulations relative to Court Supervised Proceedings and
Court Appointees including, but not limited to, the qualifications for a Court
Appointee established in 935 CMR 501.104(3)(d)1., and the list of Preapproved
Court Appointees.
(d)
Commission Qualifications for
Court Appointees.
1.
Qualifications. The Commission deems the following
qualifications essential in a Court Appointee , subject to the court's
discretion. At a minimum, an individual or entity seeking to be a Preapproved
Court Appointee shall demonstrate the following qualifications consistent with
the regulatory requirements for licensees. An applicant may seek a waiver of
these qualifications under
935 CMR 501.850. The
failure to maintain these qualifications may be a basis for disqualification.
b.
Ownership and Control
Limits. A person or entity named as a Court Appointee shall, prior
to and as a result of being a Court Appointee , be in compliance with the
control limitations set forth in
935 CMR
501.050(1)(b) or any other
limitations on licensure set forth in
935 CMR
501.000.
2.
Application Process for
Preapproved Court Appointees. The Commission or its delegee may
preapprove, recommend, disqualify, or discipline Preapproved Court Appointees.
A person or entity seeking to be a Preapproved Court Appointee shall pay a fee
established in
935 CMR 501.005(7)(a)
and submit the following information and
make the necessary disclosures:
a.
Qualifications. An applicant shall demonstrate the
qualifications set forth in 935 CMR 501.104(3)(d)1.
b.
Credentials. An
applicant shall demonstrate sufficient training, knowledge and experience, to
ensure a Licensee under their or its supervision shall comply with Commissions
statutory and regulatory requirements.
c.
Affiliated Individuals or
Entities. An applicant shall identify any person or entity that
may exert control or influence over the Preapproved Court Appointee , whether or
not such individuals or entities are can exercise the authority of a Court
Appointee .
d.
Engaged
Individuals or Entities. An applicant shall identify an person or
entity that the applicant intends to engage in conducting the work of a Court
Appointee , whether or not such individuals or entities are exercising the
authority of a Court Appointee .
e.
Financial Information. An applicant shall make such
financial disclosures necessary to determine its ability to serve as a Court
Appointee .
f.
Licenses. The applicant shall submit any professional or
occupational licenses and represent that these licenses are in good
standing.
g.
Good
Standing. If the applicant is an entity, it shall submit a valid
Certificate of Good Standing issued each by the Secretary of the Commonwealth
and the Department of Revenue.
h.
Limitations. The applicant shall identify any
limitations on the ability to serve as a Court Appointee including, but not
limited to, capacity, qualifications, credentials, conflicts of interest, and
financial requirements.
i. An
applicant shall submit any additional information the Commission or its delegee
may request, in its sole discretion.
j.
Suitability. An
applicant shall demonstrate suitability to operate a Licensee . If the applicant
is an entity, each individual exercising the authority of a Court Appointee
shall demonstrate suitability as provided in
935 CMR
501.000. An applicant shall demonstrate suitability
by:
i. Submitting to a criminal background
check in accordance with
935 CMR
501.030,
935 CMR
501.101 and
935
CMR 501.105; or
ii. Submitting an attestation under the pains
and penalties of perjury that the applicant is suitable to operate a
Licensee .
3.
Application requirements in this 935 CMR 501.104(3)(d)2., shall apply only to
persons and entities acting as a Court Appointee .
4.
Renewal. In order
to remain as Preapproved Court Appointee , each Preapproved Court Appointee , on
the anniversary of their preapproval, shall annually attest to the Commission
under the pains and penalties of perjury that there has been no material change
to the information and disclosures submitted as part of the initial application
or provide updated information and disclosures with respect to those that have
changed, and pay the fee identified in
935 CMR
501.005(7)(b).
(e)
Licensee's
Obligations. A Licensee placed under the oversight or a Court
Appointee shall:
1. Continue to comply with
all legal and regulatory requirements applicable to a Licensee , except as
otherwise determined pursuant a court order or a waiver granted pursuant to
935 CMR
501.850.
2. Provide the Commission with any documents
requested by the Commission.
3.
Cooperate with the Commission's efforts to intervene as an interested party in
any Court proceeding pursuant to which a Court Appointee is sought.
4. Comply with the requirements of 935 CMR
501.104(1) upon final disposition of the License (s) subject to oversight by a
Court Appointee .
5. When a Licensee
files a petition, it shall propose in such petition a Court Appointee with the
qualifications identified in 935 CMR 501.104(3)(d)1. and/or may choose from the
Commission's list of Preapproved Court Appointees.
(f) Applicability of 935 CMR 104(3).
1. All Licensees and Persons or Entities
having Direct or Indirect Control shall comply with the notice requirements
established in 935 CMR 501.104(3)(c).
2. A Person or Entity Having Direct or
Indirect Control that has its ownership or control interest placed under the
oversight of a Court Appointee shall be exempt from the requirements of
subsection 935 CMR 501.104(3)(b) and (d) through (f); provided however, that
upon final disposition of the interest in question, the Licensee shall comply
with the requirements of 935 CMR 501.104(1), as applicable.
(4)
Assignment for the Benefit of Creditors
. A Licensee
must seek Commission approval, in a form or manner determined by the
Commission, prior to effectuating an Assignment for the Benefit of Creditors .
The Commission may delegate authority to approve such agreements to the
Executive Director; provided however, that any transfer of a License shall be
subject to Commission Approval.
(5)
The MTC shall keep current all information required by
935 CMR
501.000 or otherwise required by the Commission. The
MTC shall report any changes in or additions to the content of the information
contained in any document to the Commission within five business days after
such change or addition.
Notes
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