D.C. Mun. Regs. tit. 22, r. 22-C5502
Current through Register Vol. 71, No. 52, December 27, 2024
Rule 22-C5502 - TRANSFER OF EQUAL OR MAJORITY OWNERSHIP OR CONTROL5502.1 At least thirty (30) days before executing an agreement that will result in the transfer of ownership or control of fifty percent (50%) or more of the ownership interest or common stock of a registration for a medical marijuana dispensary, cultivation center, or testing laboratory, th e current registrant shall submit to the Board an application for a transfer of equal or majority ownership or control.
5502.2 A registrant shall not complete the sale or transfer of fifty percent (50%) or more of its ownership or control of a registration for a medical marijuana dispensary, cultivation center, or testing laboratory until the registrant has received written approval from the Board of the sale or transfer.
5502.3 If a registrant transfers ownership or control of fifty percent (50%) or more of its ownership or control of a registration for a medical marijuana dispensary, cultivation center, or testing laboratory without Department approval, the registrant's registration, or authorization to apply for a registration, shall automatically be deemed void and shall be surrendered to the Board up on demand.
5502.4 To apply for a transfer of fifty percent (50%) or more of its ownership or control of a registration for a medical marijuana dispensary, cultivation center, or testing laboratory, a registrant shall complete the Board application form and provide the following:
(a) The legal name or trade name of the business and a copy of the trade name registration, if applicable;(b) The name, address, date of birth, and social security number of the individual owner, partners, limited liability company or partnership member, principal officers, directors, or shareholders (no P.O. Boxes will be accepted);(c) The Certificate of Good Standing for the partnership, limited liability company or partnership, or corporation, issued within thirty (30) days of the date of submission of the application;(d) A Basic Business Registration from the Board of Consumer and Regulatory Affairs with a General Business registration endorsement;(e) A valid zoning determination letter for the premises issued in the name of the new owner;(f) Evidence that the applicant has entered into a bona fide agreement with the owner of the building to lease, purchases, or occupy the premises;(g) A signed and notarized Physician Affidavit Form, if applicable;(h) A signed and notarized Acknowledgment and Attestation form;(i) A detailed description of the proposed operations plan and closure plan;(j) A detailed description of the proposed business plan and services to be offered;(k) A proposed staffing plan (if there are no changes, to the existing staffing plan it may be resubmitted);(l) The proposed security plan (if there are no changes, the existing security plan may be resubmitted);(m) The proposed product safety, quality control, and labeling plan (if there are no changes to the existing product safety, quality control, and labeling plan, it may be resubmitted);(n) The proposed recordkeeping and inventory tracking plan (if there are no changes to the existing recordkeeping and inventory tracking plan, it may be resubmitted);(o) The proposed environmental plan, if applicable (if there are no changes to the existing environmental plan, it may be resubmitted);(p) Information on the source of funds used to acquire the ownership or control interests of the dispensary, cultivation center, or testing laboratory;(q) A copy of both the Bill of Sale and the Purchase and Sale Agreement between the former registrant and new applicant; and(r) A notarized and signed copy of the Transfer of Registration Affidavit Form.5502.5 The proposed transferee(s) shall pass a criminal background check.
5502.6 If the proposed transfer pertains to a medical marijuana dispensary registration, the proposed transferee(s) shall not own or control the interest of one percent (1%) or more in another medical marijuana dispensary registered to operate in the District of Columbia or that has been deemed eligible to operate in the District of Columbia.
5502.7 The proposed transferee(s) shall not operate the dispensary, cultivation center, or testing laboratory until they have received a registration issued by the Board.
D.C. Mun. Regs. tit. 22, r. 22-C5502
Emergency and Third Proposed Rulemaking published at 58 DCR 3299 (April 15, 2011)[EXPIRED]; as amended by Emergency and Fourth Proposed Rulemaking published at 58 DCR 7207 (August 12, 2011)[EXPIRED]; as amended by Final Rulemaking published at 58 DCR 10128, 10199 (December 2, 2011); as amended by Final Rulemaking published at 60 DCR 10061 (July 12, 2013); Final Rulemaking published at 67 DCR 5383 (5/22/2020); Amended by Final Rulemaking published at 71 DCR 2388 (3/8/2024)Authority: Section 14 of the Legalization of Marijuana for Medical Treatment Amendment Act of 2010 (Act), effective July 27 , 2010 (D.C. Law 18-210; D.C. Official Code §§ 7-1671.01, et seq.), and Mayor's Order 2011-71, dated April 13, 2011.