Rule 5. Application requirements; financial and criminal background.

(1) The first part of the application is a financial background and full criminal history background check of the applicant. For purposes of this rule an applicant includes the officers, directors, and managerial employees of the applicant and any persons who hold any direct or indirect ownership interest in the applicant.

(2) An applicant shall disclose the identity of every person having any ownership interest in the applicant with respect to which the license is sought including, but not limited to, date of birth, government issued identification, or any other documents required by the act.

(3) An applicant and any persons who have a direct or indirect interest in the applicant, as well as any officers, directors, and managerial employees of the applicant shall disclose all the financial information required in the act and these rules in a format created by the department including, but not limited to, the following:

(a) Financial statements, pecuniary interest, any deposit of value of the applicant or made directly or indirectly to the applicant, or both, and financial account information including but not limited to, funds, savings, checking, or other accounts including any or all financial institutions information, such as names, account type, amounts of the foregoing, and a list of all loans, amounts, securities, or lender information.

(b) Property ownership information, deeds, leases, rent, real estate trusts, purchase agreements or institutional investors.

(c) Tax information, W-2 and 1099 forms, and any other information required by the department.

(d) For in-state and out-state applicants, the applicant’s business organizational documents filed with this 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 or foreign entity, if applicable.

(e) Disclosure by the applicant of the identity of any other person who meets either of the following:

(i) Controls, directly or indirectly, the applicant.

(ii) Is controlled, directly or indirectly, by the applicant or by a person who controls, directly or indirectly, the applicant.

(f) Written consent by the applicant to a financial background investigation as authorized under the act and these rules.

(g) Disclosure by the applicant of any true parties of interest as required in section 404 of the act.

(h) Disclosure by the applicant of the stockholders or other persons having a 1% or greater beneficial interest in the proposed marihuana facility as required in section 303 of the act.

(i) The sources and total amount of the applicant's capitalization to operate and maintain the proposed marihuana facility in compliance with Rule 11.

(j) A CPA-attested financial statement including foreign attested CPA statement, or its equivalent, if applicable, on capitalization pursuant to Rule 11.

(k) Information on the financial ability of the applicant to purchase and maintain adequate liability and casualty insurance in compliance with Rule 10.

(l) Any other documents, disclosures, or attestations created or requested by the department that are not inconsistent with the act or these rules.

(4) An applicant and each person having any ownership interest in the proposed marihuana facility and each person who is an officer, director, or managerial employee of the applicant shall disclose criminal history background information and regulatory compliance as provided under the act and these rules in a format created by the department, including, but not limited to, all the following:

(a) Attestation, in writing, that the person consents to inspections, examinations, searches, and seizures that are permitted under the act and these rules.

(b) Written consent to a criminal history check, submission of a passport quality photograph to the department and 1 set of fingerprints to the department of state police in accordance with section 402 of the act and these rules for the applicant, each person having any ownership interest in the proposed marihuana facility, and each person who is an officer, director, or managerial employee of the applicant.

(c) Submission of a handwriting exemplar, fingerprints, photographs, and information authorized by the act and by these rules.

(d) Attestation affirming a continuing duty to provide information requested by the department and to cooperate in any investigation, inquiry, or hearing.

(e) Attestation acknowledging that sanctions may be imposed for violations on a licensee while licensed or after the license has expired as provided in the act and these rules.

(f) Disclosure of any noncompliance with any regulatory requirements in this state or any other jurisdiction.

(g) Disclosure of an application or issuance of any commercial license or certificate issued in this state or any other jurisdiction and the requirements under section 401(1)(e) of the act.

(h) Any other documents, disclosures, or attestations created or requested by the department that are not inconsistent with the act or these rules.

(5) An applicant shall submit in the application any information requested and required by the act and these rules.


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