Let’s be real: changing ownership of a cannabis business is a slog. Between “nontransferable” licenses that force full entity sales, wildly different definitions of who counts as an owner, and piles of disclosures, fingerprints, forms, and fees, deals get stuck in a hurry-up-and-wait cycle. Most states still require pre-approval, and with boards that meet infrequently, one missed agenda can push closings back by months—leaving buyers and sellers in costly limbo. Many states do not have required time frames by which they will approve or deny a request for a change of ownership. Indeed, our contributors are aware of change approvals that have lasted over two years before approval.  Additionally, some states charge exorbitant fees for this review process, and that is before factoring in the attorney fees and other costs associated with long delays.   

It doesn’t have to be this hard. Alcohol license transfers are usually handled quickly and efficiently, with most states processing changes in ownership within a few weeks after receiving the necessary paperwork. This stands in stark contrast to the cannabis industry. Regulators should streamline routine ownership changes by shifting to a simple notice model (with required affirmations from the parties that information is true and accurate), standardizing timelines, and allowing expedited change processes during renewal periods.  

If you’ve gone through a cannabis change of ownership, we want your insights to help make that case. Fill out our short survey for a chance to win six free months of an NCIA membership. Your experience can drive smarter, faster rules that keep compliance strong without stalling legitimate transactions.

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