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§ 5003. Designation of Owner.

16 CA ADC § 5003BARCLAYS OFFICIAL CALIFORNIA CODE OF REGULATIONS

Barclays Official California Code of Regulations Currentness
Title 16. Professional and Vocational Regulations
Division 42. Bureau of Cannabis Control
Chapter 1. All Bureau Licensees
Article 2. Applications
16 CCR § 5003
§ 5003. Designation of Owner.
(a) All applicants for a commercial cannabis license shall have at a minimum one individual who meets the definition of “owner” under Business and Professions Code section 26001(al) and who will submit the information required of owners under section 5002 of this division.
(b) “Owner” means any of the following:
(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
(2) The chief executive officer of a nonprofit or other entity.
(3) A member of the board of directors of a nonprofit.
(4) The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.
(5) An individual entitled to a share of at least 20 percent of the profits of the commercial cannabis business.
(6) An individual who will be participating in the direction, control, or management of the person applying for a license. Such an individual includes any of the following:
(A) A general partner of a commercial cannabis business that is organized as a partnership.
(B) A non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company.
(C) An officer or director of a commercial cannabis business that is organized as a corporation.
(c) When an entity is an owner in a commercial cannabis business, all entities and individuals with a financial interest in the entity shall be disclosed to the Bureau and may be considered owners of the commercial cannabis business. For example, this includes all entities in a multi-layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust, and managing members or non-member managers of the entity. Each entity disclosed as having a financial interest must disclose the identities of persons holding financial interests until only individuals remain.
Note: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26001 and 26012, Business and Professions Code.
HISTORY
1. New section filed 12-7-2017 as a deemed emergency pursuant to Business and Professions Code section 26013(b)(3); operative 12-7-2017 (Register 2017, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-5-2018 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 6-4-2018 as an emergency, including new subsection (b)(4), subsection relettering, amendment of newly designated subsections (b)(5) and (b)(5)(B) and new subsections (b)(5)(D) and (c); operative 6-6-2018 pursuant to Government Code section 11346.1(d) (Register 2018, No. 23). Pursuant to Business and Professions Code section 26013(b)(3), this is a deemed emergency and the emergency regulations remain in effect for 180 days. A Certificate of Compliance must be transmitted to OAL by 12-3-2018 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 6-4-2018 order, including amendment of section and Note, transmitted to OAL 12-3-2018 and filed 1-16-2019; amendments operative 1-16-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 3).
This database is current through 9/11/20 Register 2020, No. 37
16 CCR § 5003, 16 CA ADC § 5003
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