OAR 845-025-1170: Change of Ownership

(1) For the purposes of this rule, “change of ownership”: (a) Means a licensee or laboratory licensee proposes to: (A) Add a licensee of record; (B) Replace a current licensee of record; or (C) Change its ownership structure such that natural persons who did not hold a direct or indirect interest in the business at the start of the license year will collectively hold a direct or indirect interest of 51 percent or greater. (b) Does not mean a “change of business structure” as described in OAR 845-025-1165. (2) To submit a change of ownership request: (a) The proposed licensee or laboratory licensee must submit a new application in accordance with OAR 845-025-1030; (b) Within 14 calendar days of the date the application described in subsection (a) of this section is submitted, the current licensee or laboratory licensee must submit a completed change of ownership notification form, as prescribed by the Commission, signed by the current licensee or laboratory licensee. (c) For a retail license, a certificate of tax compliance issued no earlier than 90 calendar days prior to the date the change of ownership request was submitted, must be submitted for each current licensee, as described in OAR 845-025-1015 and each new applicant, as that term is described in OAR 845-025-1045. (3) The Commission shall review a change of ownership application in accordance with OAR 845-025-1090 and 845-025-1115. (4) A change of ownership application must comply with the timeframes described in OAR 845-025-1135 to complete the application process. (5) The Commission may refuse to process a change of ownership application if the change of ownership notification form is submitted by: (a) A person other than the licensee or licensee representative of the licensed business for which the change of ownership is proposed; or (b) A business that is not currently licensed. (6) The Commission shall deem a change of ownership application that does not include all of the information required under subsection (2)(c) of this rule to be incomplete. (7) Submission of a change of ownership request under this rule does not confer the privileges of a licensee to the applicant until the license is issued. (8) Violations. Allowing a person other than the licensee to obtain an ownership interest as described in OAR 845-025-1045 or operate the licensed business before the Commission approves the change of ownership application is a Category I violation.