Current through Register Vol. 47, No. 17, September 10, 2024
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.
