<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".05" citation="COMAR 14.17.16.05" title_num="14" subtitle_num="17" chapter_num="16" heading="Prohibited Acts.">
  <paragraph num="A.">
    <text>A licensee may not transfer ownership of the license for the purpose of:</text>
    <paragraph num="(1)">
      <text>Improperly shielding the license or the value of the license from any judgement or liability; or</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Furthering any action or plan of action that violates any State, local or federal law.</text>
    </paragraph>
  </paragraph>
  <paragraph num="B.">
    <text>Except as authorized under Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland, a licensee may not be:</text>
    <paragraph num="(1)">
      <text>A member of the General Assembly;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>An employee of the Administration; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Otherwise in violation of Alcoholic Beverages and Cannabis Article, §36-504, Annotated Code of Maryland.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>An individual, group of individuals or persons may not own multiple, non-majority or unreported shares or interests in a cannabis license unless every holding is a passive interest that:</text>
    <paragraph num="(1)">
      <text>Has an aggregate ownership interest of less than 5 percent; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Does not have control over the license.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Owners found in violation of this regulation by the Administration may be subject to any of the following sanctions:</text>
    <paragraph num="(1)">
      <text>Fine;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Suspension or revocation of the licensed business; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Forced divestiture of the owner from the licensed business.</text>
    </paragraph>
  </paragraph>
</regulation>