§ 5023. Business Modifications.
16 CA ADC § 5023BARCLAYS 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 3. Licensing
16 CCR § 5023
§ 5023. Business Modifications.
Business modifications to items contained in the application shall be made in accordance with the following:
(a) Changes to standard operating procedures may be made without providing notification to the Bureau, except at renewal as required under section 5020 of this division. Licensees shall maintain a copy of all current and prior operating procedures as required by section 5037 of this division.
(b) If at the time of licensure, a licensee employed less than 20 employees and later employs 20 or more employees, the licensee shall provide to the Bureau a document attesting that the licensee has entered into a labor peace agreement and will abide by the terms of the agreement, as soon as reasonably practicable once employing 20 or more employees. Once the licensee has entered into the labor peace agreement, the licensee shall provide the Bureau with a copy of the page of the labor peace agreement that contains the signatures of the union representative and the applicant.
(c) Licenses are not transferrable or assignable to another person or owner. In the event of the sale or other transfer of the business or operations covered by the licensee, changes in ownership shall be made in accordance with the following:
(1) If one or more of the owners of a license change, the new owners shall submit the information required under section 5002(c)(20) for each new owner to the Bureau within 14 calendar days of the effective date of the ownership change. The business may continue to operate under the active license while the Bureau reviews the qualifications of the new owner(s) in accordance with the Act and these regulations to determine whether the change would constitute grounds for denial of the license, if at least one existing owner is not transferring his or her ownership interest and will remain as an owner under the new ownership structure. If all owners will be transferring their ownership interest, the business shall not operate under the new ownership structure until a new license application has been submitted to and approved by the Bureau, and all application and license fees for the new application have been paid.
(A) A change in ownership occurs when a new person meets the definition of owner in section 5003 of this division.
(B) A change in ownership does not occur when one or more owners leave the business by transferring their ownership interest to the other existing owner(s).
(2) In cases where one or more owners leave the business by transferring their ownership interest to the other existing owner(s), the owner or owners that are transferring their interest shall provide a signed statement to the Bureau confirming that they have transferred their interest.
(d) When there is a change in persons with financial interest(s) in the commercial cannabis business that do not meet the requirements for a new license application under this section, the licensee shall submit the information required by sections 5002(c)(19) and 5004 of this division to the Bureau within 14 calendar days of the change.
(e) When any of the following changes occur, the licensee shall notify the Bureau within 14 calendar days of the change:
(1) Any change to contact information from the information provided to the Bureau in the original application.
(2) Any change in name if the licensee is an individual, or any change in legal business name if the licensee is a business entity.
(3) Any change in business trade name (DBA) or fictitious business names.
(4) Any change to financial information including funds, loans, investments, and gifts required in the original application under section 5002(c)(18) of this division.
(5) Any change in the bond required under section 5008 of this division.
(6) Any change or lapse in insurance coverage required under section 5308 of this division.
(f) Licensees may request to add an A-designation or M-designation to their license by sending a notification to the Bureau signed by at least one owner as defined in section 5003 of this division. A licensee shall not operate under the requested designation until they have received approval from the Bureau.
(g) Microbusiness licensees may add a commercial cannabis activity to their license or remove a commercial cannabis activity from their license if doing so is consistent with the requirement set forth in section 5500(a) of this division that licensees engage in at least three (3) commercial cannabis activities. Licensees shall request the modification by completing a request to modify the licensed premises pursuant to section 5027 of this division. A licensee shall not engage in a new commercial cannabis activity until they have paid for the modification and received approval from the Bureau.
(h) Licenses may not be transferred from one premises to another. Licensees shall not operate out of a new premises until they have been issued a new license.
(i) For any business modification or notification under this section, licensees shall use and submit to the Bureau the Notification and Request Form, BCC-LIC-027 (New 10/18), which is incorporated herein by reference, unless the change can be made through the Bureau's online system.
Note: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 136 and 26012, Business and Professions Code.
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 amendment of section heading and section; 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, 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 7/17/20 Register 2020, No. 29
16 CCR § 5023, 16 CA ADC § 5023
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