Bulletin 2019-05: Clarifying the Equity Applicant’s CEO Responsibilities

The Office of Cannabis (“OOC”) issues this bulletin to clarify the Chief Executive Officer (“CEO”) requirement for Applicants seeking to qualify as Equity Applicants while holding an ownership interest of at least 40% and less than 51% in a corporate Applicant.

Roles and Responsibilities of the CEO

Section 1604 of the San Francisco Police Code (“Section 1604”) discusses the criteria an Applicant must meet to qualify as an Equity Applicant.  In particular, an Applicant that submits an application for a Cannabis Business Permit and holds an ownership interest of at least 40% and below 51% must also serve as the CEO of the corporate Applicant in order to qualify as an Equity Applicant.

Factors the OOC will consider in determining whether an individual Applicant is in fact CEO of the corporate Applicant include but are not limited to the following:

  • Whether the Applicant holds the title of CEO.
  • Whether the Applicant acts as the main point of contact between the board of directors and staff of the corporate Applicant.
  • Whether the Applicant serves as the public face of the company.
  • Whether the Applicant makes employment decisions for managers and support staff of the corporate Applicant.
  • Whether the Applicant has responsibility for significant business decisions within the corporate Applicant.
  • Whether the Applicant presides over meetings of the members or shareholders of the corporate Applicant. 

 

Post on 11/19/2019

 

Sharing your comments with the Office of Cannabis
Any person may submit written comments or arguments relevant to the proposed rules during the comment period. If you have questions or want to submit written comments or arguments, email officeofcannabis@sfgov.org.

In addition to submitting by email, written comments may be submitted by U.S. mail or in person to:

Office of Cannabis
San Francisco City Hall
1 Dr. Carlton B. Goodlett Pl. Room 018
San Francisco
CA 94102-4685

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