§ 133 — Revocation of registrations, licenses and permits for cause; procedure for revocation or cancellation

§ 133. Revocation of registrations, licenses and permits for cause;\nprocedure for revocation or cancellation. 1. Any registration, license\nor permit issued pursuant to this chapter may be revoked, cancelled,\nsuspended and/or subjected to the imposition of a civil penalty for\ncause.\n 2. There shall be a rebuttable presumption of revocation for the\nfollowing causes:\n (a) conviction of the registered organization, licensee, permittee or\nhis or her agent or employee for selling any illicit cannabis on the\npremises registered, licensed or permitted; or\n (b) for transferring, assigning or hypothecating a registration,\nlicense or permit without prior written approval of the office.\n 3. Notwithstanding the issuance of a registration, license or permit\nby way of renewal, the board may revoke, cancel or suspend such\nregistration, license or permit and/or may impose a civil penalty\nagainst any holder of such registration, license or permit, as\nprescribed by this section, for causes or violations occurring during\nthe license period immediately preceding the issuance of such\nregistration, license or permit.\n 4. (a) As used in this section, the term "for cause" shall also\ninclude the existence of a sustained and continuing pattern of\nmisconduct, failure to adequately prevent diversion or disorder on or\nabout the registered, licensed or permitted premises, or in the area in\nfront of or adjacent to the registered or licensed premises, or in any\nparking lot provided by the registered organization or licensee for use\nby registered organization or licensee's patrons, which significantly\nadversely affects or tends to significantly adversely affect the\nprotection, health, welfare, safety, or repose of the inhabitants of the\narea in which the registered or licensed premises is located.\n (b) (i) As used in this section, the term "for cause" shall also\ninclude deliberately misleading the board or office of cannabis\nmanagement:\n (A) as to the nature and character of the business to be operated by\nthe registered organization, licensee or permittee; or\n (B) by substantially altering the nature or character of such business\nduring the registration or licensing period without seeking appropriate\napprovals from the board.\n (ii) As used in this subdivision, the term "substantially altering the\nnature or character" of such business shall mean any significant and\nmaterial alteration in the scope of business activities conducted by a\nregistered organization, licensee or permittee that would require\nobtaining an alternate form of registration, license or permit.\n 5. As used in this chapter, the existence of a sustained and\ncontinuing pattern of misconduct or disorder on or about the premises\nmay be presumed upon the sixth incident reported to the board by a law\nenforcement agency, or discovered by the board during the course of any\ninvestigation, of misconduct or disorder on or about the premises or\nrelated to the operation of the premises, absent clear and convincing\nevidence of either fraudulent intent on the part of any complainant or a\nfactual error with respect to the content of any report concerning such\ncomplaint relied upon by the board.\n 6. Any registration, license or permit issued by the board pursuant to\nthis chapter may be revoked, cancelled or suspended and/or be subjected\nto the imposition of a monetary penalty set forth in this chapter in the\nmanner prescribed by this section. In addition to the grounds set forth\nin this section, the board may also revoke, cancel, or suspend any\nregistration, license, or permit where such person holding such\nregistration, license, or permit has been found to have refused to\npermit a regulatory inspection by the board.\n 7. The board may on its own initiative, or on complaint of any person,\ninstitute proceedings to revoke, cancel or suspend any adult-use\ncannabis retail dispensary license or adult-use cannabis on-site\nconsumption license and may impose a civil penalty against the licensee\nafter a hearing at which the licensee shall be given an opportunity to\nbe heard. Such hearing shall be held in such manner and upon such notice\nas may be prescribed in regulation by the board.\n 8. All other registrations, licenses or permits issued under this\nchapter may be revoked, cancelled, suspended and/or made subject to the\nimposition of a civil penalty by the office after a hearing to be held\nin such manner and upon such notice as may be prescribed in regulation\nby the board. In addition to the grounds set forth in this section, the\noffice may also revoke, cancel, or suspend any registration, license, or\npermit where such person holding such registration, license, or permit\nhas been found to have refused to permit a regulatory inspection by the\noffice.\n 9. Where a licensee or permittee is convicted of two or more\nqualifying offenses within a five-year period, the office, upon receipt\nof notification of such second or subsequent conviction, shall, in\naddition to any other sanction or civil or criminal penalty imposed\npursuant to this chapter, impose on such licensee a civil penalty not to\nexceed ten thousand dollars. For purposes of this subdivision, a\nqualifying offense shall mean the sale of cannabis to a person under the\nage of twenty-one not otherwise authorized by this chapter. For purposes\nof this subdivision only, a conviction of a licensee or an employee or\nagent of such licensee shall constitute a conviction of such licensee.\n 10. The board may adopt rules and regulations based on federal\nguidance, provided those rules and regulations are designed to comply\nwith federal guidance and mitigate federal enforcement against the\nregistrations, licenses, or permits issued under this chapter, or the\ncannabis industry as a whole. This may include regulations which permit\nthe sharing of licensee, registrant, or permit holder information with\ndesignated banking or financial institutions, provided these regulations\nare designed to aid cannabis industry participants' access to banking\nand financial services.\n