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§ 15004. Financial Interest in a Commercial Cannabis Business.

4 CA ADC § 15004Barclays Official California Code of RegulationsEffective: November 7, 2022

Barclays California Code of Regulations
Title 4. Business Regulations
Division 19. Department of Cannabis Control
Chapter 1. All Licensees
Article 2. Applications
Effective: November 7, 2022
4 CCR § 15004
§ 15004. Financial Interest in a Commercial Cannabis Business.
Currentness
(a) An applicant for a commercial cannabis license or a licensee shall disclose all financial interest holders. A financial interest holder of the commercial cannabis business includes all of the following, except as provided in subsection (b):
(1) A person with an aggregate ownership interest of less than 20 percent.
(2) A person providing a loan to the commercial cannabis business.
(3) A person entitled to receive 10 percent or more of the profits of the commercial cannabis business, including:
(A) An employee who has entered into a profit share plan with the commercial cannabis business.
(B) A landlord who has entered into a lease agreement with the commercial cannabis business for a share of the profits.
(C) A consultant who is providing services to the commercial cannabis business for a share of the profits.
(D) A person acting as an agent, such as an accountant or attorney, for the commercial cannabis business for a share of the profits.
(E) A broker who is engaging in activities for the commercial cannabis business for a share of the profits.
(F) A salesperson who earns a commission.
(G) A person who has entered into an intellectual property licensing agreement for a share of the profits.
(b) Financial interest holders do not include any of the following:
(1) A bank or financial institution whose interest constitutes a loan;
(2) Persons whose only financial interest in the commercial cannabis business is through an interest in a diversified mutual fund, blind trust, or similar instrument;
(3) Persons whose only financial interest is a security interest, lien, or encumbrance on property that will be used by the commercial cannabis business; and
(4) Persons who hold a share of stock that is less than 10 percent of the total shares in a publicly traded or privately held company.

Credits

Note: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26051.5, Business and Professions Code.
History
1. Change without regulatory effect renumbering and amending former title 16, section 5004 to new title 4, section 15004 filed 7-14-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 29). For prior history of title 16, division 42, see Register 2019, No. 3.
2. Amendment 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 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, including new subsection (a)(3)(G), transmitted to OAL 9-26-2022 and filed 11-7-2022; amendments effective 11-7-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 45).
This database is current through 4/26/24 Register 2024, No. 17.
Cal. Admin. Code tit. 4, § 15004, 4 CA ADC § 15004
End of Document