1. In a local governmental jurisdiction that issues business licenses, the issuance by the Board of a license shall be deemed to be conditional until such time as:
(a) The cannabis establishment is in compliance with all applicable local governmental ordinances or rules;
(b) The local government has issued a business license for the operation of the cannabis establishment; and
(c) The cannabis establishment satisfies an inspection conducted by the Board.
2. The Board shall adopt regulations:
(a) Requiring the surrender of a conditional license if a cannabis establishment does not satisfy the requirements of subsection 1 within a period of time determined by the Board; and
(b) Authorizing a cannabis establishment to request an extension of the period of time established pursuant to paragraph (a) as a result of factors outside of the control of the cannabis establishment that cause a delay in satisfying the requirements of subsection 1.