1. (1) A smoke shop B or smoke shop C may apply to transfer ownership. Smoking is not permitted on the premises of a smoke shop operating under different ownership until the Authority issues an updated certification to the new owner in accordance with this rule.

2. (2) To apply to transfer to a new owner, the smoke shop B or smoke shop C must submit the following documentation to the Authority:

   1. (a) A completed application for transfer of ownership on a form provided by the Authority (available online or by calling the Tobacco Prevention and Education Program) identifying the new proposed owner of the smoke shop;
   2. (b) Registration with the Oregon Secretary of State, Corporation Division where applicable; and
   3. (c) A notarized, sworn statement attesting that the business will continue to meet the certification renewal requirements described in OAR 333-015-0059 under the new ownership.
3. (3) The Authority shall recognize a transfer of ownership of a smoke shop B or smoke shop C and issue an updated certification if the applicant complies with section (2).

4. (4) The Authority may deny a transfer of ownership of a smoke shop B or smoke shop C if:

   1. (a) The applicant fails to satisfy section (2) of this rule;
   2. (b) The proposed owner has a history of noncompliance with the Act or these rules; or
   3. (c) The applicant provides information that is false or deliberately misleading.
5. (4) Within 120 days of the Authority issuing an updated certification under section (3) of this rule, the new owner must submit to the Authority updated financial documentation required in OAR 333-015-0058 for the first 90 days of operation under the updated certification, including but not limited to a sales report demonstrating that at least 75 percent of the smoke shop’s gross revenue during the first 90 days of operation was derived from the sale of tobacco products or smoking instruments.

6. (5) A smoke shop B or smoke shop C may apply to transfer location. Smoking is not permitted on the premises of a smoke shop operating at a new location until the Authority issues an updated certification recognizing the new location in accordance with this rule.

   1. (a) To apply to transfer location, the smoke shop must submit the following documentation to the Authority:

      1. (A) A completed application for transfer of location on a form provided by the Authority (available online or by calling the Tobacco Prevention and Education Program);

      2. (B)

         1. (i) A copy of the deed or rental lease for the new location, indicating that the business does not occupy more than 3,500 square feet; or
         2. (ii) If the new location occupies more than 3,500 square feet, documentation demonstrating that the location where the shop was originally certified occupied more than 3,500 square feet and the square footage of the new location is no more than 110 percent of the square footage of the original certification location;

      3. (C) A notarized, sworn statement attesting that:

         1. (i) The smoke shop will cease to operate in the old location; and
         2. (ii) The smoke shop, as operated in the new location meets the certification renewal requirements described in OAR 333-015-0059 as applicable;

   2. (b) The Authority shall recognize a transfer of location of a smoke shop B or smoke shop C and issue an updated certification if:

      1. (A) The smoke shop submits all of the documentation required by subsection (5)(a) of this rule to the Authority;

      2. (B)

         1. (i) The new location does not occupy more than 3,500 square feet; or
         2. (ii) The new location is no more than 110 percent of the square footage of the original smoke shop location if the new location occupies more than 3,500 square feet;
      3. (C) The smoke shop ceases to operate in the original location; and
      4. (D) The smoke shop, as operated in the new location meets the certification renewal requirements described in OAR 333-015-0059 as applicable.

7. (6) The Authority may deny a transfer of location of a smoke shop B or smoke shop C if the applicant:

   1. (a) Fails to satisfy section (5) of this rule; or
   2. (b) Provides information that is false or deliberately misleading.
8. (7) A smoke shop A may not apply to transfer and must submit a new application under OAR 333-015-0056 to operate a new location or under new ownership.

Statutory/Other Authority

ORS 433.855

Statutes/Other Implemented

ORS 433.835 - 433.870

History

PH 23-2019, adopt filed 11/18/2019, effective 01/01/2020