Current through Register Vol. 47, No. 17, September 10, 2024
Basis and Purpose - 2160
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(1)(e),
44-50-203(1)(n),
44-50-203(2)(a),
44-50-203(2)(c),
44-50-203(2)(l),
and 44-50-302(1)
-(2), C.R.S. The purpose of this rule is to establish that each Natural
Medicine Business must have at least one Owner Licensee, and each Healing
Center must employ or contract with at least one Facilitator in order to
operate. The rule further clarifies that a Licensee cannot subvert
responsibility for violations of the Natural Medicine Code or these Rules if
the violations were performed by a third-party acting on behalf of or at the
direction of the Licensee.
A.
Revoked Owners.
1.
Less than 100% of all Owners - Divestiture. If less
than 100% of a Natural Medicine Business' Owner Licenses are revoked by a Final
Agency Order, the Natural Medicine Business must divest all of the interest of
the revoked Owner Licensee.
a. Unless
extended for good cause, within 90 days of an Owner having his, her, or their
Owner License revoked, the Natural Medicine Business must either:
i. Submit a change of owner application,
where required, and any document(s) necessary to transfer all of the interests
that Owner owns to one or more persons that are not prohibited from holding a
license. Any required change of owner application is subject to approval by the
Division; or
ii. Where a change of
owner application is not required, transfer all of the interest of that Owner
to one or more Persons that are not a Person prohibited from holding a
license.
b. In
determining whether good cause for an extension exists, the Division will
consider whether there is any buy-back provision with the Owner. If a
mediation, arbitration, or legal proceeding has been initiated regarding the
required divestiture, the 90-day deadline is extended until 90 days following
execution of a settlement agreement, arbitration order, or final judgment
concluding the mediation, arbitration, or legal proceeding.
c. A Natural Medicine Business that fails to
divest an Owner as required by this Rule may be subject to denial, fine,
suspension, or revocation of its License(s). The State Licensing Authority may
consider aggravating and mitigating factors surrounding measures taken to
divest a revoked Owner when determining the imposition of a
penalty.
2.
All Owners are Revoked. A Natural Medicine Business's
License may be revoked if 100% of its Owners have his or her or their Owner's
License revoked.
B.
Suspension of Owners.
1.
Suspension of Less than 100%
of the Owner(s) of a Natural Medicine Business. In the event of
the suspension of the Owner License of an Owner, either (i) the Natural
Medicine Business must comply with all requirements of Rule 9020 - Disciplinary
Process: Summary Suspensions, or (ii) the non-suspended Owner Licensee(s) must
control the Natural Medicine Business without participation from the suspended
Owner(s).
2.
Suspension
of 100% of the Owners of a Natural Medicine Business. A Natural
Medicine Business cannot operate if all Owners are
suspended.
C.
At Least One Owner Holding a Valid Owner License
Required. No Natural Medicine Business may operate or be licensed
unless it has at least one Owner Licensee who holds a valid Owner
License.
D.
At Least
One Facilitator License Required for Each Healing Center License.
A Healing Center may only operate if it has employed or contracted with at
least one licensed Facilitator who also holds a Natural Medicine Handler
License or Owner License.
E.
Loss Of Owner License As An Owner Of Multiple
Businesses. If an Owner License is suspended or revoked as to one
Natural Medicine Business, that Owner License is automatically suspended or
revoked as to any other Natural Medicine Business in which that person is an
Owner.
F.
Prohibited
Third-Party Acts. No Licensee may employ, contract with, hire, or
otherwise retain any person, including but not limited to an employee, agent,
or independent contractor, to perform any act or conduct on the Licensee's
behalf or for the Licensee's benefit if the Licensee is prohibited by law or
these Rules from engaging in such conduct itself.
1. A Licensee may be held responsible for all
actions and omissions of any person the Licensee employs, contracts with,
hires, or otherwise retains, including but not limited to an employee, agent,
or independent contractor, to perform any act or conduct on the Licensee's
behalf or for the Licensee's benefit.
2. A Licensee may be subject to license
denial or administrative action, including but not limited to fine, suspension,
or revocation of its license(s), based on the act and/or omissions of any
person the Licensee employs, contracts with, hires, or otherwise retains,
including but not limited to an employee, agent, or independent contractor, to
perform any act or conduct on the Licensee's behalf or for the Licensee's
benefit.
