.08 Transfer of Ownership Interest in a License.

A. No ownership interest shall be assignable or transferable unless:

(1) The Commission has received notice of the intent of the owner of the interest, or of the estate of the owner of the interest, to transfer or assign an ownership interest in a license to another party;

(2) The Commission approves the transfer or assignment;

(3) The transferee has paid the required fee specified in COMAR 10.62.35; and

(4) If the ownership interest is 5 percent or more, the transferee has provided the criminal history record information and an audited financial statement to the Commission of the transferee.

B. If the licensee is a business entity with publicly traded stock, §A of this regulation only applies to a proposed transfer of an ownership interest of 5 percent or more.

C. A transfer or assignment of ownership interest shall be approved if:

(1) The Commission receives notice of the intent of the owner of the interest, or of the estate of the owner of the interest, to transfer or assign an ownership interest in a license to another party, in a form prescribed by the Commission;

(2) The proposed transfer does not violate Health-General Article, §§13-330113-3316, Annotated Code of Maryland;

(3) The transferee has paid the required fee specified in COMAR 10.62.35; and

(4) If the ownership interest is 5 percent or more:

(a) The criminal history record information does not violate COMAR 10.62.09.03; and

(b) The payment of taxes due in any jurisdiction is not in arrears.

D. The Commission shall deny transfer of an interest for any proposed transferee:

(1) If the transferee is convicted of or pleads nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside; or

(2) If the payment of taxes due in any jurisdiction is in arrears.

E. The Commission may deny transfer of a controlling interest in a license or in an ownership interest of 5 percent or more if the Commission finds a substantial reason to deny the proposed transfer.

F. A person or entity may not have an ownership interest in or control of, including the power to manage or operate, more than one licensed grower.