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Bill Detail: HB19-1090

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Title Publicly Licensed Marijuana Companies
Status Governor Signed (05/29/2019)
Bill Subjects
  • Liquor, Tobacco, & Marijuana
House Sponsors K. Van Winkle (R)
M. Gray (D)
Senate Sponsors O. Hill (R)
J. Gonzales (D)
House Committee Finance
Senate Committee Finance
Date Introduced 01/14/2019
Description

The bill repeals the provisions that require limited passive
investors to go through an initial background check. The bill repeals the
provisions that limit the number of out-of-state direct beneficial owners
to 15 persons. The bill repeals the provision that prohibits publicly traded
corporations from holding a marijuana license.
The bill creates 2 new ownership licenses, controlling beneficial

owners and passive beneficial owners. The bill gives the state licensing
authority rule-making authority related to the parameters of, qualifications
of, disclosure of, requirements for, and suitability for the new license
types. A controlling beneficial owner is a person that is the beneficial
owner of 10% or more of the securities of a marijuana business, is an
affiliate, or is otherwise in a position to exercise control of the marijuana
business. A passive beneficial owner is a person that is not an affiliate of
a marijuana business, has no control over the marijuana business, and
owns less than 10% of the securities of a marijuana business.
The bill requires a person intending to apply to become a
controlling beneficial owner or passive beneficial owner to receive a
finding of suitability or an exemption from the state licensing authority
prior to submitting a marijuana business application. When applying for
suitability, a person must disclose all of its officers, directors, and
affiliates; all controlling beneficial owners; if a publicly traded
corporation, all of its controlling beneficial owners of 10% or more; and,
if not a publicly traded corporation, all of its officers, directors, beneficial
owners, affiliates, and passive beneficial owners. The bill also requires a
marijuana business or controlling beneficial owner that is a publicly
traded corporation to comply with various notification, disclosure, notice,
and suitability requirements. The bill limits the types of publicly traded
corporations that can be marijuana businesses or controlling beneficial
owners.
Current statutes list areas in which the state licensing authority
may adopt rules but does not limit the rules to those areas. The bill limits
the state licensing authority's power to adopt rules to those areas listed in
statutes.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (03/26/2019) (most recent)  
Additional Bill Documents Bill Documents
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