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§ 5004. Financial Interest in a Commercial Cannabis Business.

16 CA ADC § 5004BARCLAYS 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 § 5004
§ 5004. Financial Interest in a Commercial Cannabis Business.
(a) A financial interest means an agreement to receive a portion of the profits of a commercial cannabis business, an investment into a commercial cannabis business, a loan provided to a commercial cannabis business, or any other equity interest in a commercial cannabis business except as provided in subsection (d). For the purpose of this division, an agreement to receive a portion of the profits includes, but is not limited to, the following individuals:
(1) An employee who has entered into a profit share plan with the commercial cannabis business.
(2) A landlord who has entered into a lease agreement with the commercial cannabis business for a share of the profits.
(3) A consultant who is providing services to the commercial cannabis business for a share of the profits.
(4) A person acting as an agent, such as an accountant or attorney, for the commercial cannabis business for a share of the profits.
(5) A broker who is engaging in activities for the commercial cannabis business for a share of the profits.
(6) A salesperson who earns a commission.
(b) The license application shall include the name, birthdate, and government-issued identification type and number for all individuals who have a financial interest in a commercial cannabis business but are not owners as defined in section 5003(b) of this division.These individuals shall not be required to submit the information required of owners under section 5002(c)(20) of this division.
(c) When an entity has a financial interest in a commercial cannabis business, then all individuals who are owners of that entity shall be considered financial interest holders 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.
(d) Notwithstanding subsection (b), the following persons are not required to be listed on an application for licensure under section 5002(c)(19) of this division:
(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 5 percent of the total shares in a publicly traded company.
Note: Authority cited: Section 26013, Business and Professions Code. Reference: Sections 26012 and 26051.5, 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 amendment of subsection (a); 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 2/7/20 Register 2020, No. 6
16 CCR § 5004, 16 CA ADC § 5004
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