Bureau of Cannabis Control Emergency Regulations CODE OF REGULATIONS TITLE 16 DIVISION
§ 5023. Business Modifications
Business modifications for any item contained in the application shall be made in accordance
with the following:
(a) Changes to standard operating procedures may be made without providing notification to the
Bureau. Licensees shall maintain a copy of all current and prior operating procedures as required
by section 5037 of this division.
(b) If at the time of licensure, a licensee employed less than 20 employees and later employs 20
or more employees, the licensee shall provide to the Bureau a document attesting that the
licensee has entered into a labor peace agreement and will abide by the terms of the agreement as
soon as reasonably practicable once employing 20 or more employees.
(c) Licenses are not transferrable. If one or more of the owners of a license change, a new license
application and fee shall be submitted to the Bureau within 10 business days of the effective date
of the ownership change. A change in ownership occurs when a new person meets the definition
Bureau of Cannabis Control Emergency Regulations Readopt Text – Readopt June 2018 Page 23 of 120 of owner in section 5003 of this division. A change in ownership does not occur when one or
more owners leave the business by transferring their ownership interest to the other existing
owner(s). In cases where one or more owners leave the business by transferring their ownership
interest to the other existing owner(s), the owner or owners that are transferring their interest
shall provide a signed statement to the Bureau confirming that they have transferred their
(d) When there is a change in persons with financial interest(s) in the commercial cannabis
business that do not meet the requirements for a new license application under this section, the
licensee shall submit the information required by sections 5002(c)(19) and 5004 of this division
to the Bureau within 10 business days of the change.
(e) Licensees may request to add an A-designation or M-designation to their license by sending a
notification to the Bureau signed by at least one owner as defined in section 5003 of this
division. A licensee shall not operate under the requested designation until they have received
approval from the Bureau.
(f) Microbusiness licensees may add a commercial cannabis activity to their license or remove a
commercial cannabis activity from their license if doing so is consistent with the requirement set
forth in section 5500(a) of this division that licensees engage in at least three (3) commercial
cannabis activities. Licensees shall request the modification by completing a request to modify
the premises pursuant to section 5027 of this division. A licensee shall not engage in a new
commercial cannabis activity until they have paid for the modification and received approval
from the Bureau.
(g) Licenses may not be transferred from one premises to another. Licensees shall not operate out
of a new premises until they have been issued a new license.
Authority: Section 26013, Business and Professions Code. Reference: Sections 136 and 26012,
Business and Professions Code.