1 Colo. Code Regs. § 212-3-2-2145

Current through Register Vol. 47, No. 20, October 25, 2024

Section 1 CCR 212-3-2-2145 - Change of Ownership Applications

Basis and Purpose - 2145

The statutory authority for this rule includes but is not limited to sections 44-50-104(2), 44-50-202(1)(b), 44-50-203(1)(a), 44-50-203(1)(b), 44-50-203(1)(d), 44-50-203(2)(a), and 44-50-302(1) -(2), C.R.S. The purpose of this rule is to establish the application process and conditions an Applicant or Licensee must meet for a change in ownership of a Natural Medicine Business.

A.General Requirements.

1. A Natural Medicine Business shall provide a notice with its next renewal application that identifies any transfer of interests between existing Owner Licensees of that Natural Medicine Business. A Natural Medicine Business shall also provide notice with its next renewal application that identifies any Owner Licensee of less than 100% of the Natural Medicine Business that has been removed from the Natural Medicine Business. The addition of, or the transfer of any of the interests to, an Owner Licensee who is not an existing Owner Licensee of the Natural Medicine Business requires Division approval prior to transferring any interest in a Natural Medicine Business.

2. A proposed Owner cannot operate the Natural Medicine Business for which it intends to become an Owner until it receives all approvals and/or License(s) pursuant to any change of owner application required by this Rule. An Owner that already holds an Owner License and has been approved in connection with the Natural Medicine Business may continue to operate the Natural Medicine Business while the change of owner application is pending. A violation of this requirement is grounds for denial of the change of owner application and may result in disciplinary action against existing License(s).

B.Documents Required. Any change of owner application(s) regarding an Owner of a Natural Medicine Business must include the following documents:

1. Asset purchase agreement, merger, sales contract, agreement, or any other document necessary to effectuate the change of owner;

2. Application for an Owner License for each proposed Owner that does not already hold an Owner License;

3. Operating agreement, by-laws, partnership agreement, or other governing document(s) as will apply to the Natural Medicine Business if the change of owner application is approved;

4. Request for voluntary surrender form of the Owner License of any Owner that will not remain an Owner of at least one Natural Medicine Business if the change of owner application is approved; and

5. An affirmation and consent signed by any Owner whose Owner's interest is decreasing as a result of the change of owner application.

C.Natural Medicine Business Subject to Administrative Action. If a Natural Medicine Business or any of its Owner(s) apply for a change of owner and is involved in an administrative action, the following may apply:

1. The change of owner application may be delayed or denied until the administrative action is resolved; or

2. If the change of owner application is approved by the Division, the transferor, the transferee, or both may be responsible for the actions of the Natural Medicine Business and its prior Owner(s), and subject to discipline based upon the same.

1 CCR 212-3-2-2145

47 CR 17, September 10, 2024, effective 10/1/2024