Mich. Admin. Code R. 420.4 - Application requirements; financial and criminal background
Rule 4.
(1) Each
applicant shall disclose the identity of any other person who controls, either
directly or indirectly, the applicant, including, but not limited to, date of
birth, government issued identification, and any other documents required by
the agency.
(2) Each applicant
shall disclose the financial information required in the acts and these rules
on a form created by the agency, which may include the following:
(a) For an applicant seeking licensure under
the MMFLA, required information may include, but is not limited to, all of the
following:
(i) Financial statements regarding
all of the following:
(A) A pecuniary
interest.
(B) Any deposit of value
of the applicant or made directly or indirectly to the applicant, or
both.
(C) Financial accounts
including, but not limited to, all of the following: funds, savings, checking,
or other accounts including all applicable account information, such as the
name of the financial institution, names of the account holders, account type,
account balances, and a list of all loan types specified by the agency,
amounts, securities, or lender information.
(ii) Property ownership information,
including, but not limited to, deeds, leases, rental agreements, real estate
trusts, or purchase agreements.
(iii) Tax information, including, but not
limited to, W-2 and 1099 forms, and any other information required by the
agency.
(iv) Disclosure by the
applicant of the identity of any other person who meets either of the
following:
(A) Controls, directly or
indirectly, the applicant.
(B) Is
controlled, directly or indirectly, by the applicant or by a person who
controls, directly or indirectly, the applicant.
(v) The sources and total amount of the
applicant's capitalization to operate and maintain the proposed marihuana
facility in compliance with R 420.11.
(vi) A financial statement attested by a
certified public accountant (CPA), on a form created by the agency, including a
foreign-attested CPA statement, or its equivalent if applicable on
capitalization pursuant to R 420.11.
(vii) Information on the financial ability of
the applicant to purchase and maintain adequate liability and casualty
insurance in compliance with R 420.10.
(viii) Any other documents, disclosures, or
attestations created or requested by the agency that are not inconsistent with
the acts or these rules.
(b) For an applicant seeking licensure under
the MRTMA all of the following may be required:
(i) Tax information, including, but not
limited to:
(A) W-2 forms for the most recent
tax year.
(B) 1099 forms for the
most recent tax year.
(ii) Any other information relevant to the
application for licensure required by the agency.
(3) Each applicant shall disclose
the identity of every person having a 2.5% or greater ownership interest in the
applicant with respect to which the license is sought.
(a) If the disclosed entity is a trust, the
applicant shall disclose the names and addresses of the
beneficiaries.
(b) If the disclosed
entity is a privately held corporation, the names and addresses of all
shareholders, officers, and directors.
(c) If the disclosed entity is a publicly
held corporation, the names and addresses of all shareholders holding a direct
or indirect interest of greater than 5%, officers, and directors.
(d) If the disclosed entity is a partnership
or limited liability partnership, the names and addresses of all
partners.
(e) If the disclosed
entity is a limited partnership or limited liability limited partnership, the
names of all partners, both general and limited.
(f) If the disclosed entity is a limited
liability company, the names and addresses of all members and
managers.
(4) Each
applicant shall disclose the applicant's business organizational documents
filed with this state, any other state, local county, or foreign entity, if
applicable, including proof of registration to do business in this state and
certificate of good standing from this state, any other state, or foreign
entity, if applicable.
(5) Each
applicant shall disclose to the agency criminal and financial background
information and regulatory compliance as provided under the acts and these
rules on a form created by the agency.
(6) Each applicant shall provide written
consent to a criminal and financial background investigation as authorized
under the acts and these rules.
(7)
Each applicant shall provide an attestation acknowledging that sanctions may be
imposed for violations on a licensee while licensed or after the marihuana
license has expired, as provided in the acts and these rules.
(8) Each applicant shall provide an
attestation affirming a continuing duty to provide information requested by the
agency and to cooperate in any investigation, inspection, inquiry, or
hearing.
(9) Each applicant shall
disclose any noncompliance with any regulatory requirements, all legal
judgments, lawsuits, legal proceedings, charges, or government investigations,
whether initiated, pending, or concluded, against the applicant, that are
related to business operations, including, but not limited to fraud,
environmental, food safety, tobacco, alcohol, labor, employment, worker's
compensation, discrimination, and tax laws and regulations, in this state or
any other jurisdiction.
(10) Each
applicant shall disclose any application or issuance of any commercial license
or certificate issued in this state or any other jurisdiction that meets the
requirements under the acts and these rules.
(11) Each applicant shall provide any other
documents or attestations created by, or make any disclosures requested by, the
agency that are not inconsistent with the acts or these rules.
(12) An applicant shall submit in the
application any information requested and required by the acts and these
rules.
(13) Each applicant seeking
licensure under the MMFLA must submit one set of fingerprints to the department
of state police in accordance with section 402 of the MMFLA, MCL
333.27402.
(14) Each applicant
seeking licensure under the MRTMA shall provide an attestation acknowledging
that the applicant must have a physical structure for the marihuana
establishment and pass the prelicensure inspection within 60 calendar days of
submitting a complete application to the agency. Failure to pass the
prelicensure inspection within 60 calendar days of submitting the complete
application to the agency may result in the application begin denied in
accordance with R 420.12.
(15) An
applicant shall provide an attestation signed by a representative of the
department of treasury and the applicant, verifying that the applicant is not
delinquent in the payment of sales, excise, or any other taxes.
(16) An applicant seeking licensure under the
MRTMA shall provide a social equity plan detailing a plan to promote and
encourage participation in the marihuana industry by people from communities
that have been disproportionately impacted by marihuana prohibition and
enforcement and to positively impact those communities.
Notes
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