<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s691dece1-f53d-4fa0-97cc-c987ab256ae4P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s691dece1-f53d-4fa0-97cc-c987ab256ae4C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s691dece1-f53d-4fa0-97cc-c987ab256ae4000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } a.s691dece1-f53d-4fa0-97cc-c987ab256ae4000004 { text-decoration: none; } </style></head><body><div><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=44:90:03:04"><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000000">44</span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000000">:</span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000000">90</span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000000">:</span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000000">03</span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000000">:</span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000000">04</span></a><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000001">.  </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000001">Transfer of ownership.</span><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0"> </span><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">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 § </span><a href="https://sdlegislature.gov/Rules?Rule=44:90:03:01"><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000002">44:90:03:01</span></a><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">.</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4000003"> </span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">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:</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4000003"> </span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    (1)  </span><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">The </span><a id="_Hlk81393191" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4000004"></a><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">establishment is operating in substantial compliance with its department-approved operating procedures or can demonstrate that circumstances beyond its control prevented such operation</span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">;</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    (2)  </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">The establishment provides advance written notification to the department;</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    (3)  </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">The new owners meet all requirements of this article; and</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    (4)  </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">The city or county issues any required registration, license</span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">,</span><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0"> or permit to the establishment s new owners.</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4000003"> </span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">Nothing in this section shall be interpreted to require a city or county to approve a transfer of ownership.</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4000003"> </span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000001">Source:</span><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0"> </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">48 SDR 40, effective October 5, 2021.</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000001">General Authority:</span><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0"> </span><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=34-20G-72"><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000002">34-20G-72</span></a><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">(2).</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">    </span><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000001">Law Implemented:</span><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0"> </span><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=34-20G-55"><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000002">34-20G-55</span></a><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">(1), </span><a href="https://sdlegislature.gov/Statutes?Statute=34-20G-57"><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000002">34-20G-57</span></a><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">, </span><a href="https://sdlegislature.gov/Statutes?Statute=34-20G-61"><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0-000002">34-20G-61</span></a><span class="s691dece1-f53d-4fa0-97cc-c987ab256ae4C0">.</span></p><p dir="ltr" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4P0"><span xml:space="preserve" class="s691dece1-f53d-4fa0-97cc-c987ab256ae4000003"> </span></p></div></body></html>