§40128. Annual License Application Requirements. (a) To apply for a manufacturer license from the Department, the applicant shall submit the following on behalf of the commercial cannabis business: (1) A completed application form as prescribed by the Department, or through MCLS, which includes all of the following information: (A) Business information specified in Section 40129;
(B) Owner information as specified in Section 40130; and (C) Manufacturing premises and operations information as specified in Section 40131; (2) For new applications, the nonrefundable application fee as specified in Section 40150(a); for renewal applications, the nonrefundable annual license fee as specified in Section 40150(b); (3) Evidence of compliance with or exemption from the California Environmental Quality Act (CEQA) as specified in Section 40132; and (4) The limited waiver of sovereign immunity as specified in Section 40133, if applicable. (b) The application shall be signed by the applicant under penalty of perjury that the information provided in and submitted with the application is complete, true, and accurate, and shall include the following attestations: (1) The applicant is authorized to act on behalf of the commercial cannabis business; (2) The applicant entity, when it has 20 or more employees, has entered, or will enter as soon as reasonably practicable, into a labor peace agreement and will abide by the terms of the agreement as required by section 26051.5 (a)(5)(A) of the Act. The applicant shall provide the Department a copy of the page of the labor peace agreement that contains the signatures of the union representative and the applicant. (3) The commercial cannabis business is operating in compliance with all local ordinances; and (4) The proposed premises is not within a 600-foot radius of the perimeter of a school providing instruction in kindergarten or any grades 1 through 12, or a day care center, or youth center, or that the premises complies with the local ordinance specifying a different radius, as specified in section 26054(b) of the Act.; and
(5) For an applicant entity with more than one employee, the applicant employs, or will employ within one year of receiving a license, one supervisor and one employee who have successfully completed a Cal/OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. (c) The Department may request additional information and documents from the applicant as necessary to determine whether the applicant or the commercial cannabis business meets the requirements and qualifications for licensure. Authority: Sections 26012; 26013; and 26130, Business and Professions Code. Reference: Sections 26050; 26051.5; and 26054, Business and Professions Code. §40129. Annual License Application Requirements – Business Information. (a) The applicant shall submit the following information for the commercial cannabis business: (1) The legal business name; (2) The federal tax identification number. If the commercial cannabis business is a sole proprietorship, the applicant shall submit the social security number or individual taxpayer identification number of the sole proprietor; (3) The registered name(s) under which the business will operate (Fictitious Business Name, Trade Name, “Doing Business As”), if applicable; (4) The business’s mailing address which will serve as the address of record; (5) The name, title, phone number and email address of the primary contact person for the commercial cannabis business; (6) The seller’s permit number issued by the California Department of Tax and Fee Administration or notification issued by the California Department of Tax and Fee Administration that the business is not required to have a seller’s permit. If the applicant
has not yet received a seller’s permit, the applicant shall attest that the applicant is currently applying for a seller’s permit; (7) The business structure of the commercial cannabis business as filed with the California Secretary of State (e.g., limited liability company, partnership, corporation) or operation as a sole proprietor. A commercial cannabis business that is a foreign corporation or foreign limited liability company under the California Corporations Code shall include with its application the certificate of qualification status issued by the California Secretary of State; (8) A list of the all owners, as defined in Section 40102; (9) A list of all financial interest holders, as defined in Section 40102, which shall include: (A) For financial interest holders that are individuals, the first and last name of the individual, and the type and number of the individual’s government-issued identification (e.g., driver’s license); or (B) For financial interest holders that are entities, the legal business name and federal taxpayer identification number of the entity; (10) Proof of having obtained a surety bond in the amount of $5,000, payable to the State of California as obligee, to ensure payment of the cost incurred for the destruction of cannabis or cannabis products necessitated by a violation of the Act or the regulations adopted thereunder. The bond shall be issued by a corporate surety licensed to transact surety business in the State of California; (11) The license type applied for and whether the application is for medicinal cannabis product manufacturing, adult-use cannabis product manufacturing, or both; (12) The business formation documents, which may include, but are not limited to, articles of incorporation, bylaws, operating agreements, partnership agreements, and fictitious business name statements. If the commercial cannabis business is held in
trust, the applicant shall provide a copy of the certificate of trust establishing trustee authority; (13) All documents filed with the California Secretary of State, which may include, but are not limited to, articles of incorporation, articles of organization, certificates of limited partnership, and statements of partnership authority. (b) Pursuant to section 26055(e) of the Act, an applicant may voluntarily submit a copy of a license, permit, or other authorization to conduct commercial cannabis manufacturing activities issued by the local jurisdiction. When an applicant submits a local authorization, upon receipt of the application, the Department shall contact the applicable local jurisdiction to confirm the validity of the authorization. If the local jurisdiction does not respond within 10 calendar days, the Department shall consider the authorization valid. Authority: Sections 26012; 26013; and 26130, Business and Professions Code. Reference: Sections 26050; and 26051.5, Business and Professions Code. §40130. Annual License Application Requirements – Owners. (a) Each owner shall submit all of the following information: (1) Name; (2) Title or position held; (3) Social security number or individual taxpayer identification number; (4) Date of birth; (5) Mailing address; (6) Contact phone number and email address; (7) A copy of Department of Justice form BCIA 8016, provided to the applicant by the Department of Public Health and signed by the live scan operator; and
(8) Disclosure of all of the following, including any actions against the owner as an individual and against a business entity in which the owner was an officer or an owner. The information provided shall include dates and a description of the circumstances, if applicable: (A) Any criminal conviction from any jurisdiction. Adjudications by a juvenile court and infractions do not need to be disclosed. Convictions dismissed under Penal Code section 1203.4 or equivalent non-California law must be disclosed; (B) Any civil proceeding or administrative penalty or license sanction that is substantially related to the qualifications of a manufacturer as identified in Section 40162, including proceedings, penalties or sanctions against you or against a business entity in which you were an owner or officer; (C) Any fines or penalties for cultivation or production of a controlled substance on public or private land pursuant to Fish and Game Code section 12025 or 12025.1; (D) Any sanctions by a licensing authority, city, or county for unlicensed commercial cannabis activity within 3 years preceding the date of the application; (E) Any suspension or revocation of a cannabis license by a licensing authority or local jurisdiction within 3 years preceding the date of the application; (F) Any administrative orders or civil judgements for violations of labor standards against you or against a business entity in which you were an officer or owner within the 3 years immediately preceding the date of the application. (9) Disclosure of any ownership interest or financial interest in any other cannabis business licensed under the Act. (b) The owner shall sign under penalty of perjury that the information provided in and submitted with the application is complete, true, and accurate. (c) An owner disclosing a criminal conviction or other penalty or sanction pursuant to subsection (a), paragraphs (8)(A) and (B), shall submit any evidence of rehabilitation with the application for consideration by the Department. A statement of rehabilitation
shall be written by the owner and contain all the evidence that the owner would like the Department to consider that demonstrates the owner’s fitness for licensure. Supporting evidence may be attached to the statement of rehabilitation and may include, but is not limited to, evidence specified in Section 40165, and dated letters of reference from employers, instructors, or counselors that contain valid contact information for the individual providing the reference. Authority: Sections 26012; 26013; and 26130, Business and Professions Code. Reference: Sections 26012; 26013; 26050; 26055; and 26130, Business and Professions Code. * * * * * §40137. Application Withdrawal. (a) An applicant may withdraw an application for annual licensure at any time prior to the issuance or denial of the license. Requests to withdraw an application shall be submitted in writing to the Department or through MCLS. (b) An applicant may reapply for annual licensure at any time subsequent to the withdrawal of an application; however, a new application and application fee are required. (c) Withdrawal of an application shall not deprive the Department of its authority to institute or continue a proceeding against the applicant for the denial of the license upon any ground provided by law or to enter an order denying the license upon any such ground. (d) The application fee paid for a new application and the annual license fee paid for a renewal application shall not be refunded when if an application is withdrawn. Authority: Sections 26012; 26013; and 26130, Business and Professions Code. Reference: Sections 26012; and 26050, Business and Professions Code.
§40152. Gross Annual Revenue Calculation. (a) The applicant shall calculate the gross annual revenue for the licensed premises based on the annual gross sales of cannabis products and, if applicable, the annual revenue received from manufacturing, packaging, labeling or otherwise handling cannabis or cannabis products for other licensees, in the twelve months preceding the date of application. (b) For a new license applicant, the gross annual revenue shall be based on the gross sales and revenue expected during the first 12 months following licensure. (c) For a manufacturer licensee that is also licensed as a distributor or retailer, and that sells or transfers cannabis products manufactured on the licensed premises in a non-arm’s length transaction, the annual gross sales or revenue for such transactions shall be based on the product’s fair market value of the product if it was were to be sold in an arm’s length transaction at wholesale. (d) For purposes of this section, an “arm’s length transaction” means a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. Authority: Sections 26012; 26013; and 26130, Business and Professions Code. Reference: Sections 26012; and 26180, Business and Professions Code. * * * * * §40179. Death, Incapacity, or Insolvency of a Licensee. (a) In the event of the death, incapacity, receivership, assignment for the benefit of creditors or other event rendering one or more owners’ incapable of performing the duties associated with the license, the owner or owners’ successor in interest (e.g., appointed guardian, executor, administrator, receiver, trustee, or assignee) shall notify the Department in writing, within 10 business days. (b) To continue operations or cancel the existing license, the successor in interest shall submit to the Department the following: (1) The name of the successor in interest; (2) The name of the owner(s) for which the successor in interest is succeeding and the license number; (3) The phone number, mailing address, and email address of the successor in interest; and (4) Documentation demonstrating that the owner(s) is incapable of performing the duties associated with the license such as a death certificate, or a court order, and documentation demonstrating that the person making the request is the owner or owners’ successor in interest such as a court order appointing guardianship, receivership, or a will or trust agreement. (c) The Department may give the successor in interest written approval to continue operations on the licensed business premises for a period of time specified by the Department: (1) If the successor in interest or another person has applied for a license from the Department for the licensed premises and that application is under review; (2) If the successor in interest needs additional time to destroy or sell cannabis or cannabis products; or (3) At the discretion of the Department. (d) The successor in interest is held subject to all terms and conditions under which a state cannabis license is held pursuant to the Act. (e) The approval pursuant to subsection (c) creates no vested right to the issuance of a state cannabis license.