Current through Register Vol. 48, No. 38, September 20, 2024
a) The
Department may deny a request for a change of ownership or sale or transfer of
a dispensing organization license for reasons including, but not limited to,
the following:
1) The entity is attempting to
sell or transfer a Conditional Adult Use Dispensing Organization
License.
2) The entity is
attempting to sell or transfer an Early Approval Adult Use Dispensing
Organization License ("same-site") issued under Section 15-15 of the Act and
Early Approval Adult Use Dispensing Organization Licenses at secondary sites
("secondary site") issued under Section 15-20 of the Act.
3) The proposed principal officers, entity,
or entity's owners held a cannabis-related registration and/or license that has
been subjected to an adverse action by any licensing jurisdiction in the United
States or any foreign jurisdiction, any governmental agency, any
law-enforcement agency, or any court;
4) The proposed principal officers, entity,
or entity's owners, employees, agents or representatives submitted information
to the Department that was deceptive, misleading, false, or fraudulent or that
tended to deceive or create a misleading impression whether directly or by
omission or ambiguity;
5) The
proposed principal officers, entity, or entity's owner, employees, agents,
third-party agents, independent contractors, or representatives made statements
to any regulatory or governmental authority that are deceptive, misleading,
false, or fraudulent, or that tend to deceive or create a misleading
impression, whether directly, or by omission or ambiguity;
6) The proposed principal officers, entity,
or entity's owners have a conviction for distribution of a controlled substance
to a minor;
7) The proposed
principal officers, entity, or entity's owners conduct in Illinois or another
jurisdiction posed or could pose a risk to the public health, safety, or
welfare; and the risk posed by the proposed new ownership entity actions
relates or could relate to the operation of a cannabis business;
8) The proposed principal officer's entity,
or entity's owners have engaged in unprofessional or unethical conduct in
Illinois or any jurisdiction, regardless of whether such conduct has resulted
in any litigation, discipline, adverse action, or settlement;
9) The entity did not commit to the same or
similar community engagement plan provided as part of the original dispensing
organization's application; or
10)
The change of ownership or sale or transfer of the license would result in a
single person or entity having a direct or indirect financial interest in more
than 10 dispensing organization licenses, as prohibited by 410 ILCS
70/15-36(c).
b) Buyer
may agree to accept any Department-initiated encumbrances a dispensing
organization license may have besides a formal complaint initiated against the
license. If the dispensing organization licensee involved in a proposed change
of ownership or sale or transfer has a complaint filed against it by the
Department prior to or during the Department's review of the transaction, then
the Department's review of the change of ownership or sale or transfer of a
license shall cease until the corresponding case of the formal complaint is
resolved.
c) If the seller entered
into an agreement with the Department, such as a consent order or a
non-disciplinary action as defined in Section 1291.60, the agreement may, with
the buyer's consent, transfer to the buyer and the new dispensing organization
license number unless otherwise resolved prior to the approval of the change of
ownership or sale or transfer of a license.
d) A buyer or seller may withdraw a change of
ownership or sale or transfer of a license request at any time with notice
provided to the Department in writing. The Department shall inform the other
party of the withdrawal in writing within five calendar days after receiving
the notice.
e) If a dispensing
organization fails to respond to a request or inquiry of the Department
regarding a proposed change of ownership or sale or transfer within 90 calendar
days of the request or inquiry, the change of ownership or sale or transfer of
a license will be considered withdrawn and the Department will provide written
notice to both buyer and seller. Any fees paid are non-refundable and shall be
paid at the time of application.
