§ 133. Revocation of registrations, licenses and permits for cause;
procedure for revocation or cancellation. 1. Any registration, license
or permit issued pursuant to this chapter may be revoked, cancelled,
suspended and/or subjected to the imposition of a civil penalty for
cause.

2. There shall be a rebuttable presumption of revocation for the
following causes:

(a) conviction of the registered organization, licensee, permittee or
his or her agent or employee for selling any illicit cannabis on the
premises registered, licensed or permitted; or

(b) for transferring, assigning or hypothecating a registration,
license or permit without prior written approval of the office.

3. Notwithstanding the issuance of a registration, license or permit
by way of renewal, the board may revoke, cancel or suspend such
registration, license or permit and/or may impose a civil penalty
against any holder of such registration, license or permit, as
prescribed by this section, for causes or violations occurring during
the license period immediately preceding the issuance of such
registration, license or permit.

4. (a) As used in this section, the term "for cause" shall also
include the existence of a sustained and continuing pattern of
misconduct, failure to adequately prevent diversion or disorder on or
about the registered, licensed or permitted premises, or in the area in
front of or adjacent to the registered or licensed premises, or in any
parking lot provided by the registered organization or licensee for use
by registered organization or licensee's patrons, which significantly
adversely affects or tends to significantly adversely affect the
protection, health, welfare, safety, or repose of the inhabitants of the
area in which the registered or licensed premises is located.

(b) (i) As used in this section, the term "for cause" shall also
include deliberately misleading the board or office of cannabis
management:

(A) as to the nature and character of the business to be operated by
the registered organization, licensee or permittee; or

(B) by substantially altering the nature or character of such business
during the registration or licensing period without seeking appropriate
approvals from the board.

(ii) As used in this subdivision, the term "substantially altering the
nature or character" of such business shall mean any significant and
material alteration in the scope of business activities conducted by a
registered organization, licensee or permittee that would require
obtaining an alternate form of registration, license or permit.

5. As used in this chapter, the existence of a sustained and
continuing pattern of misconduct or disorder on or about the premises
may be presumed upon the sixth incident reported to the board by a law
enforcement agency, or discovered by the board during the course of any
investigation, of misconduct or disorder on or about the premises or
related to the operation of the premises, absent clear and convincing
evidence of either fraudulent intent on the part of any complainant or a
factual error with respect to the content of any report concerning such
complaint relied upon by the board.

6. Any registration, license or permit issued by the board pursuant to
this chapter may be revoked, cancelled or suspended and/or be subjected
to the imposition of a monetary penalty set forth in this chapter in the
manner prescribed by this section. In addition to the grounds set forth
in this section, the board may also revoke, cancel, or suspend any
registration, license, or permit where such person holding such
registration, license, or permit has been found to have refused to
permit a regulatory inspection by the board.

7. The board may on its own initiative, or on complaint of any person,
institute proceedings to revoke, cancel or suspend any adult-use
cannabis retail dispensary license or adult-use cannabis on-site
consumption license and may impose a civil penalty against the licensee
after a hearing at which the licensee shall be given an opportunity to
be heard. Such hearing shall be held in such manner and upon such notice
as may be prescribed in regulation by the board.

8. All other registrations, licenses or permits issued under this
chapter may be revoked, cancelled, suspended and/or made subject to the
imposition of a civil penalty by the office after a hearing to be held
in such manner and upon such notice as may be prescribed in regulation
by the board. In addition to the grounds set forth in this section, the
office may also revoke, cancel, or suspend any registration, license, or
permit where such person holding such registration, license, or permit
has been found to have refused to permit a regulatory inspection by the
office.

9. Where a licensee or permittee is convicted of two or more
qualifying offenses within a five-year period, the office, upon receipt
of notification of such second or subsequent conviction, shall, in
addition to any other sanction or civil or criminal penalty imposed
pursuant to this chapter, impose on such licensee a civil penalty not to
exceed ten thousand dollars. For purposes of this subdivision, a
qualifying offense shall mean the sale of cannabis to a person under the
age of twenty-one not otherwise authorized by this chapter. For purposes
of this subdivision only, a conviction of a licensee or an employee or
agent of such licensee shall constitute a conviction of such licensee.

10. The board may adopt rules and regulations based on federal
guidance, provided those rules and regulations are designed to comply
with federal guidance and mitigate federal enforcement against the
registrations, licenses, or permits issued under this chapter, or the
cannabis industry as a whole. This may include regulations which permit
the sharing of licensee, registrant, or permit holder information with
designated banking or financial institutions, provided these regulations
are designed to aid cannabis industry participants' access to banking
and financial services.