44 : 90 : 03 : 04 . Transfer of ownership. The transfer of any ownership interest in a medical cannabis establishment of 50 percent or more to a party not already approved by the department as an owner of the establishment requires the submission of an initial application pursuant to § 44:90:03:01 .

1. (1) The establishment is operating in substantial compliance with its department-approved operating procedures or can demonstrate that circumstances beyond its control prevented such operation;
2. (2) The establishment provides advance written notification to the department;
3. (3) The new owners meet all requirements of this article; and

4. (4) The city or county issues any required registration, license, or permit to the establishment’s new owners.

   Nothing in this section shall be interpreted to require a city or county to approve a transfer of ownership.

The department may permit the transfer of an ownership interest in a medical cannabis establishment of less than 50 percent to a party not already approved by the department as an owner of the establishment if:

Source: 48 SDR 40, effective October 5, 2021.

General Authority: SDCL 34-20G-72 (2).

Law Implemented: SDCL 34-20G-55 (1), 34-20G-57 , 34-20G-61 .