MCRSA is found in California Business and Professions Code section 26000.  The purpose and intent of MCRSA is to establish a comprehensive system to control and regulate the cultivation, distribution, transportation, storage, manufacturing, processing, and sale of medicinal and adult-use cannabis.

There are three state agencies responsible for the regulation of cannabis in California: The Bureau of Cannabis Control, the Department of Food and Agriculture, and the State Department of Public Health.  Each agency is responsible for a different license-type.

There are two license types available: (1) an “A-License” for cannabis or cannabis products that are intended for adults 21 years of age or older, who do not have a physician’s recommendation; and, (2) an “M-License” for users or patient caretakers with a medical license.  The State also offers licenses for: retail, cultivation, manufacturing, testing, and microbusinesses.

All applicants seeking a commercial cannabis license must list each “owner” of the business.  An owner is defined as:

• Any person with an aggregate ownership interest of 20 percent or more in the person applying for a license or licensee, unless the interest is solely a security, lien, or encumbrance;
• The CEO of a non-profit or other entity;
• Members of the Board of Directors of a non-profit;
• An individual who will be participating in the direction, control, or management of the person applying for a license, including a general partner, a non-member manager or managing member of an LLC, or an officer of director of a corporation.

Each person who qualifies as an owner is required to fill out an “Owner Submittal” in connection with the Annual Application.

Financial interests must be disclosed on the California State Annual Application.  Financial interests include investments, loans, and equity interests.  All persons with a financial interest in a commercial cannabis business must be identified.  There are exceptions to financial interests which do not need to be disclosed.  Contact us for additional information.