BY ALICIA ALTENAU, GREEN LIGHT LAW GROUP —
Part 1 of this series went over the latest adjustments OLCC made to the foundations relating to functions. This portion will dig into adjustments in enterprise constructions – adjustments which are made after a license has already been issued. It will even evaluate among the smaller, clean-up revisions that had been made to the foundations.
Changes in Business Structure
845-025-1160(4) now permits for adjustments in enterprise constructions to be principally by discover to the OLCC, as a substitute of requiring prior approval. However, for sure additions to the license, the OLCC can require the particular person or entity who was added to be eliminated. Any enterprise that’s coming into right into a contract whereby a person or entity shall be receiving 20% or extra of the income or earnings of the enterprise should be processed as a change in enterprise construction, based on the OLCC’s October 15, 2020 steering.
Keep in thoughts that if the change quantities to a 51% change within the license, a brand new utility should nonetheless be crammed out. However, the OLCC is simply going to require a change in possession utility if there are 51% or extra new pursuits being added. That signifies that inside adjustments, even when amounting to greater than 51% that don’t add new pursuits should not adjustments in possession.
Additionally, as a result of the OLCC will not be monitoring monetary curiosity holders as intently, adjustments in individuals with a monetary curiosity who should not candidates is not going to set off a discover requirement for OLCC. Likewise, adjustments among the many membership of an LLC or the shareholders of a company that aren’t growing the particular person to above 20% (thus including an applicant) or reducing beneath 20% (eradicating an applicant) don’t set off the discover requirement. This will enable corporations to restructure in a lot of methods, if mandatory, with out notifying the OLCC of the change in construction.
The OLCC can after all request nearly any info it likes about licensees, candidates, or monetary curiosity holders.
Now, if including a person or authorized entity as an applicant, or eradicating a licensee from a license, the licensee should submit sure info and varieties previous to the change, which means in some unspecified time in the future earlier than the change truly takes impact. The OLCC remains to be required to evaluate the change, however no pre-approval is required for both change. That means the brand new applicant can primarily be added as quickly because the varieties are turned in. If including a person or entity to the license, if the OLCC wouldn’t have accredited the addition, the enterprise can take away that particular person from the license. If the elimination doesn’t occur, the OLCC can droop or revoke the license.
Certain different adjustments could also be made with out prior approval or prior notification, however the OLCC does must be notified inside 60 days after the change. Both these adjustments solely apply to publicly-traded companies, and embrace a shareholder gaining 20% or extra of the voting inventory, or adjustments to the principal officers.
845-025-1080 – permits the OLCC to require licensees or monetary curiosity holders to endure a background test as soon as per license yr (not simply at renewal).
845-025-2040(2)(a) – producers should clearly determine the scale, manufacturing methodology, measurements and shapes for every mature and immature cover space within the licensed premises. This appears to be a change in wording with not a lot impact.
845-025-2040(6)(b)(D) – for manufacturing tier adjustments, the applicant should have submitted a LUCS approving the rise in tier dimension, however doesn’t must submit verification of safety measures for the extra cover.
845-025-2045(2) – removes the requirement for propagation plan with the intention to apply for a propagation endorsement. The applicant solely must attest to the necessity for the extra immature cover. The OLCC eliminated language that allowed producers with a earlier LUCS to not submit a further one so long as there’s no change in mixture dimension of the mature or immature cover. This would suggest with 845-025-2040 above that if the applicant wants to extend tier dimension, it can want a brand new LUCS.
845-025-2500(2)(c) – medical producers not want to supply a scaled flooring plan or map specifying the place the medically designated mature cover shall be situated on the licensed premises. Similar to leisure producers, the management plan is now explicitly included on the applying type.