Montana Code 16-12-129. Department to conduct background checks
16-12-129. Department to conduct background checks. (1) In addition to any other requirement imposed under this chapter, before issuing any license under this chapter the department shall conduct:
Terms Used In Montana Code 16-12-129
- Controlling beneficial owner: means a person that satisfies one or more of the following:
(a)is a natural person, an entity that is organized under the laws of and for which its principal place of business is located in one of the states or territories of the United States or District of Columbia, or a publicly traded corporation, and:
(i)acting alone or acting in concert, owns or acquires beneficial ownership of 5% or more of the owner's interest of a marijuana business;
(ii)is an affiliate that controls a marijuana business and includes, without limitation, any manager; or
(iii)is otherwise in a position to control the marijuana business; or
(b)is a qualified institutional investor acting alone or acting in concert that owns or acquires beneficial ownership of more than 15% of the owner's interest of a marijuana business. See Montana Code 16-12-102
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the department of revenue provided for in 2-15-1301. See Montana Code 16-12-102
- Financial interest: means a legal or beneficial interest that entitles the holder, directly or indirectly through a business, an investment, or a spouse, parent, or child relationship, to 5% or more of the net profits or net worth of the entity in which the interest is held. See Montana Code 16-12-102
- Licensee: means a person holding a state license issued pursuant to this chapter. See Montana Code 16-12-102
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means an individual, partnership, association, company, corporation, limited liability company, or organization. See Montana Code 16-12-102
(a)a fingerprint-based background check meeting the requirements for a fingerprint-based background check by the department of justice and the federal bureau of investigation in association with an application for initial licensure and every 5 years thereafter; and
(b)a name-based background check in association with an application for initial licensure and each year thereafter except years that an applicant is required to submit fingerprints for a fingerprint-based background check.
(2)For the purpose of the background records check required under subsection (1), the department shall obtain fingerprints from each individual listed on an application submitted under this chapter and each individual who has a controlling beneficial ownership or financial interest in the license or prospective license, including:
(a)each partner of an applicant that is a limited partnership;
(b)each member of an applicant that is a limited liability company;
(c)each director and officer of an applicant that is a corporation;
(d)each individual who holds a 5% financial interest in the license applicant or is a controlling beneficial owner of the person applying for the license;
(e)each individual who is a partner, member, director, or officer of a legal entity that holds a 5% financial interest in the license applicant or is a controlling beneficial owner of the person applying for the license; and
(f)a person designated by the applicant as responsible for operating the licensed establishment on behalf of the licensee.
(3)The department may establish procedures for obtaining fingerprints for the fingerprint-based and name-based background checks required under this section.