Retailer Due Diligence

Retailer Due Diligence

 

Retail [Dispensary] Supplement

  • An owner is defined as a person with an aggregate ownership interest in the commercial cannabis business of 20 percent or more, unless the interest is solely a security, lien or encumbrance. An owner includes: • A person with an aggregate ownership 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. • The chief executive officer (CEO) of a nonprofit or other entity (i.e. corporation) • A member of the board of directors of a nonprofit. • The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held by a trust. • An individual who will be participating in the direction, control, or management of the person applying for a license. This could include: o A partner of a commercial cannabis business that is organized as a partnership. o A non-member, manager, or managing partner of a commercial cannabis business that is organized as a limited liability company. o An officer or director of a commercial cannabis business that is organized as a corporation. • Any individual that assumes responsibility for the license. • When an entity has an aggregate ownership interest of 20 percen
  • An entity is anything other than an individual. If an entity is an owner of the commercial cannabis business pursuant to Business and Professions Code section 26001(al), the applicant must provide the entity’s name, organizational structure, ownership percentage, telephone number, and email address.
  • The applicant must provide a list of all non-owner individuals with a financial interest in the cannabis business. A financial interest means an agreement to receive a portion of the profits of a commercial cannabis business, an investment into a cannabis business, a loan provided to a cannabis business, or any other equity in a cannabis business. Interest in a diversified mutual fund, blind trust or similar instrument is not a financial interest. The applicant must provide the following information for all non-owners with a financ
  • Describes how the applicant proposes to ensure cannabis is transported securely. If the applicant will not transport cannabis they must state that they will be contracting for transportation.
  • Describes how the applicant will receive shipments of cannabis, store its cannabis inventory, perform inventory reconciliation, ensure inventory records are accurate, and maintain records of the inventory.
  • Describes how the applicant will prevent the deterioration of cannabis goods, ensure that cannabis goods are properly packaged and labeled, and how they will ensure the product was tested by a licensed Testing Laboratory.
  • Describes the applicant’s procedures for allowing individuals access to the premises. Describes the applicant's video surveillance system, which includes camera placement and maintenance of the video surveillance equipment. Describes how all access points will be secure, including the use of security personnel and a description of the applicant’s alarm system.
  • Describes the applicant’s procedures for handling cannabis waste and details on whether they will be using a local agency, a waste hauler (permitted by a local agency), or self-hauling the cannabis waste to a solid waste facility. Must also describe the process for composting waste on the premises (if applicable) and how they will ensure restricted access to cannabis waste.
  • Describes how the applicant will accept and process orders, how they will verify the age and identity of the receiving customer, and verify that the address for delivery is a physical address within the State of California and is not publicly owned land or in a building leased by a public agency. The procedures must also include how cannabis goods will be delivered including vehicle and GPS information.
  • You can get the Financial Information Form from https://bcc.ca.gov/clear/financial_information_form.pdf.
    You can get the premises diagram template at https://bcc.ca.gov/clear/premises_diagram.pdfYou can get the Surety Bond form from https://bcc.ca.gov/clear/licensee_bond.pdf

 

Due Diligence Suite

Business Due Diligence Checklist         Cultivation Supplement

Distribution Supplement               Manufacturer Supplement

Retail Supplement                           Owner Information Supplement