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§ 15003. Owners of Commercial Cannabis Businesses.

4 CA ADC § 15003Barclays 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 § 15003
§ 15003. Owners of Commercial Cannabis Businesses.
Currentness
(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.

Credits

Note: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26001 and 26012, Business and Professions Code.
History
1. Change without regulatory effect renumbering and amending former title 16, section 5003 to new title 4, section 15003 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 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).
This database is current through 8/30/24 Register 2024, No. 35.
Cal. Admin. Code tit. 4, § 15003, 4 CA ADC § 15003
End of Document