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(9) <br />underlying common ownership, regardless of form of business structure, and are <br />engaged in interparty sales and/or transfers of goods. <br />o Horizontal integration shall refer to cannabis businesses operating at the same point in <br />the same supply chain, as long as they share at least 80% underlying common <br />ownership, regardless of form of business structure, and are engaged in interparty sales <br />and/or transfers of goods. <br />Commercial Cannabis businesses that are vertically or horizontally integrated are subject to: <br />o Business License Tax Security Deposit <br />All Commercial Cannabis businesses are subject to a closeout audit in the event of a transfer of <br />ownership before the new owner can establish their business license account. <br />FOR PROPOSERS' REFERENCE ONLY <br />City of Santa Ana RFP No. 23-165 Page 52 of 196 <br />