Ala. Admin. Code r. 538-X-4-.16

Current through Register Vol. 43, No. 02, November 27, 2024

Section 538-X-4-.16 - Transfer Of Licenses; Change Of Ownership

(1) A license under the Act and these Rules is a privilege and not a right. A license under these Rules is a representation of the Commission's trust in the licensee's commitment to participate in the provision of medical cannabis for the benefit of the citizens of this state; the license issued is therefore exclusive and unique to each licensee and is not a commodity to be freely traded nor the property of the licensee to be freely sold, purchased, or otherwise transferred for monetary or other gain without the express permission of the Commission, regardless of any scheme, device or artifice that may be employed in an attempt to legitimize the licensee's or transferee's efforts to do so. (See § 20-2A-58(a), Code of Ala. 1975, (as amended)).

(2) Assumption by the would-be successor of the licensee's real or personal property, equipment and supplies, responsibility for personnel, or operations, in no way constitutes a valid transfer that will exempt the would-be successor from an obligation to seek the permission of the Commission and/or to obtain its own license.

(3) Except upon the express written permission of the Commission in response to a written application {including nonrefundable application fee) by the licensee given with no less than 60 days' notice prior to the proposed date, a licensee shall not attempt to, nor shall it:

(a) transfer, sell, lease, assign, merge, cede, gift, delegate, convert, or otherwise turn over its license, to another individual, group of individuals, entity, or group of entities; or

(b) within any 36-month period, effect or allow its owners to transfer, sell, lease, assign, merge, cede, gift, delegate, convert, or otherwise turn over more than 35% of its stock (voting, nonvoting, or both), ownership or controlling interest to another individual, group of individuals, entity, or group of entities; or

(c) assume the business or any part of the operations of a licensee or former licensee.

(4) Any attempt by any licensee or would-be successor licensee to avoid the approval of the Commission with respect to this Rule and § 20-2A-58, Code of Ala. 1975, (as amended), shall be grounds for peremptory suspension or revocation of the license or for other sanction as the Commission may deem appropriate.

(5) The Commission, in its discretion, upon review of the licensee's written request, may require the licensee seeking such transfer or change of ownership to resubmit its application for license, including the submission of an additional application fee. If approved and prior to issuance of the transfer license, the transferee shall pay a transfer license fee equal to one year's license fee.

Ala. Admin. Code r. 538-X-4-.16

Adopted by Alabama Administrative Monthly Volume XL, Issue No. 11, August 31, 2022, eff. 10/15/2022.

Author: William H. Webster

Statutory Authority:Code of Ala. 1975, §§ 20-2A-22, as amended.