44:90:03:04Transfer of ownership.

The transfer of any ownership interest in a medical cannabis establishment of 50 percent or more to a party not already approved by the department as an owner of the establishment requires the submission of an initial application pursuant to § 44:90:03:01. The department may permit the transfer of an ownership interest in a medical cannabis establishment of less than 50 percent to a party not already approved by the department as an owner of the establishment if: (1) The establishment is operating in substantial compliance with its department-approved operating procedures or can demonstrate that circumstances beyond its control prevented such operation; (2) The establishment provides advance written notification to the department; (3) The new owners meet all requirements of this article; and (4) The city or county issues any required registration, license, or permit to the establishment’s new owners. Nothing in this section shall be interpreted to require a city or county to approve a transfer of ownership.

Source: 48 SDR 40, effective October 5, 2021.