04 NCAC 03M .0202        NONTRANSFERABILITY

(a)  Any attempt to transfer or assign a license through a change of control without the prior consent of the Commissioner shall:

(1)           be ineffective;

(2)           be grounds for summary suspension, or revocation of the license or other remedies available to the Commissioner; and

(3)           render the licensee jointly and severally liable with the assignee for any actions or omissions of its assignee which occur while acting under the apparent authority of the license.

(b)  A change in the identity of a licensee's controlling person or any material change in the licensee's organizational structure shall be considered a transfer or assignment of the license.  However, the Commissioner shall permit the change without requiring the licensee to apply for a new license, provided:

(1)           the licensee gives notice to the Commissioner at least 60 days in advance of the effective date of the proposed change; and

(2)           the Commissioner determines that permitting the licensee to continue to operate under its existing license would not be inconsistent with the purposes of the Act.

(c)  A notice pursuant to Subparagraph (b)(1) of this Rule shall include sufficient detail to enable the Commissioner to make the determination described in that Subparagraph (b)(2) of this Rule.

(d)  The Commissioner shall waive or reduce the advance notice requirement of Subparagraph (b)(1) of this Rule if the Commissioner determines that:

(1)           circumstances beyond the licensee's reasonable control would make compliance therewith unduly burdensome to the licensee;

(2)           consumers would not be harmed by such a waiver or reduction of the advance notice requirement;

(3)           the licensee has otherwise satisfied the requirements of this Rule; and

(4)           waiver of the requirement of Subparagraph (b)(1) is in the public interest.

 

History Note:        Authority G.S. 53-244.050; 53-244.060; 53-244.100; 53-244.118;

Temporary Adoption Eff. July 1, 2002;

Eff. April 1, 2003;

Amended Eff. May 1, 2010.