1 Colo. Code Regs. § 212-3-2-240

Current through Register Vol. 47, No. 13, July 10, 2024
Section 1 CCR 212-3-2-240 - Factors Considered in Determining Reasonable Cause for Disclosure, Finding of Suitability, and Extension of 120 Day Deadline for Finding of Suitability
A.Non-Exhaustive Factors Informing Reasonable Cause Considerations. The State Licensing Authority may consider the following non-exhaustive factors when evaluating whether Reasonable Cause exists for disclosure, requiring a reasonable cause finding of suitability or extension of time to provide a finding of suitability:
1. The Person provided materially inaccurate or incomplete documents to the Division;
2. The Person failed to provide required documents to the Division;
3. The request for a finding of suitability is sufficiently complex such that a determination cannot be completed within the 120-day deadline specified;
4. Information that an undisclosed Person is controlling or has the ability to control the Regulated Marijuana Business;
5. Information indicating one or more Persons prohibited holds an interest in the Regulated Marijuana Business;
6. Inability to obtain documents or information expected to be available from third-parties or publicly available sources;
7. The Person interfered with, obstructed, or impeded a Division investigation; or
8. The Person failed to make any filing required by a securities regulator or securities exchange that has regulatory oversight over the Person.

Basis and Purpose - 2-245

The statutory basis for this rule includes but is not limited to sections 44-10-202(1)(e), 44-10-203(1)(d), 44-10-203(1)(k), 44-10-203(2)(ee)(I)(A) and (E), 44-10-203(7), 44-10-308(3)(b), 44-10-309, 44-10-310, 44-10-311, 44-10-312, 44-10-505(1)(a), and 44-10-605(1)(a), C.R.S. The purpose of this rule is to define the application process and conditions an Applicant or Licensee must meet when changing Beneficial Ownership in a Regulated Marijuana Business. This rule further describes requirements in the event of a dispute between the Controlling Beneficial Owners of a Regulated Marijuana Business.

1 CCR 212-3-2-240

42 CR 23, December 10, 2019, effective 1/1/2020
43 CR 21, November 10, 2020, effective 1/1/2021
44 CR 07, April 10, 2021, effective 5/1/2021
44 CR 13, July 10, 2021, effective 8/1/2021
44 CR 23, December 10, 2021, effective 1/1/2022
45 CR 21, November 10, 2022, effective 12/1/2022