Oregon Administrative Rules
Chapter 845 - OREGON LIQUOR AND CANNABIS COMMISSION
Division 25 - RECREATIONAL MARIJUANA
Section 845-025-8590 - Suspension, Cancellation, Civil Penalties, Sanction Schedule

Universal Citation: OR Admin Rules 845-025-8590

Current through Register Vol. 63, No. 3, March 1, 2024

(1) The Commission may suspend or cancel:

(a) A license issued under ORS 475C.005 to 475C.525 or 475C.548.

(b) A marijuana worker permit issued under ORS 475C.269.

(c) A research certificate issued under ORS 475C.289.

(d) An industrial hemp certificate issued under OAR 845-025-2700 or 845-025-2705.

(e) A laboratory license issued under ORS 475C.548.

(2) The Commission may cancel a license under ORS 475C.265(1)(a) only when the conduct poses a significant risk to public health and safety. A significant risk to public health and safety includes, but is not limited to:

(a) Exercising licensed privileges while the license is suspended, or in violation of restrictions imposed on the license;

(b) Allowing minors at a processor license;

(c) Prohibited conduct involving a deadly or dangerous weapon or conduct that results in death or serious injury;

(d) Prohibited use of pesticides, fertilizers and agricultural chemicals;

(e) Diversion of marijuana, inversion of marijuana, or other conduct described in ORS 475C.185;

(f) Transferring or providing adulterated marijuana or hemp items to a licensee or consumer;

(g) Prohibited conduct by laboratory licensees as described in OAR 845-025-5075;

(h) Failure to meet testing requirements as described in OAR 845-025-5700, 333-007-300 to 333-007-0500 and 333, division 64;

(i) Intentionally destroying, damaging, altering, removing or concealing potential evidence, or attempting to do so, or asking or encouraging another person to do so.

(3) Civil Penalties.

(a) The Commission may impose a civil penalty under ORS 475C.405. Civil penalties will be calculated by multiplying:
(A) The number of days in a suspension, if suspension could be or is being imposed, by $165 for licensees or certificate holders for Category II(b) violations;

(B) The number of days in a suspension, if suspension could be or is being imposed, by $250 for licensees or certificate holders for all other violation categories; or

(C) The number of days in a suspension, if suspension could be or is being imposed, by $25 for permittees.

(b) The Commission may impose for each violation of a provision of ORS 475C.600 to 475C.644 or OAR 845-025-7000 to 845-025-7190, a civil penalty of no more than $500 for each day the violation occurs.

(4) The Commission uses the following violation categories for licensees licensed under ORS475C.005 to 475C.525:

(a) Category I - Violations that make licensee ineligible for a license or pose a significant risk to public health and safety;

(b) Category II - Violations that create a present threat or substantial likelihood of a present threat to public health or safety;

(c) Category II (b) - Violations for sales to a minor;

(d) Category III - Violations that create a potential threat to public health or safety;

(e) Category IV - Violations that create a climate conducive to abuses associated with the sale or manufacture of marijuana items;

(f) Category V - Violations inconsistent with the orderly regulation of the sale or manufacture of marijuana items.

(5) Violation sanctions.

(a) The Commission may sanction a licensee, permittee, Commission-certified hemp grower, or Commission-certified hemp handler in accordance with the guidelines set forth in Exhibit 1, incorporated by reference. Exhibit 1 also contains the categories for the most common violations.

(b) Exhibit 1 lists the proposed sanctions for single or multiple violations that occur within a two year period for each category described in section (3) of this rule. The Commission may allege multiple violations in a single notice or may count violations alleged in notices issued within the previous two year period toward the total number of violations. In calculating the total number of violations, the Commission may consider a proposed violation for which the Commission has not yet issued a final order.

(c) The proposed sanctions in Exhibit 1 are guidelines. If the Commission finds one or more mitigating or aggravating circumstances, it may assess a lesser or greater sanction, up to and including revocation. Mitigating circumstances may decrease the penalty but will not dismiss the violation. The Commission may decrease or increase a sanction to prevent inequity or to take account of particular circumstances in the case.

(d) Mitigating circumstances include, but are not limited to:
(A) Making a good faith effort to prevent a violation. Examples of a good faith effort to prevent a violation may include employee training programs, management oversight, and the existence and enforcement of relevant policies.

(B) Extraordinary cooperation in the violation investigation demonstrating the licensee, permittee, certificate holder, Commission-certified hemp grower, or Commission-certified hemp handler accepts responsibility.

(C) Self-reporting of a violation by a licensee or applicant. This mitigating circumstance does not apply where licensee has a pre-existing duty to report to the Commission.

(D) The licensee or applicant has demonstrated to the satisfaction of the Commission that the conduct that led to the violation is not persistent or serious.

(E) The licensee or applicant has demonstrated to the satisfaction of the Commission a willingness and ability to control the licensed premises and inventory.

(e) Aggravating circumstances include, but are not limited to:
(A) Receiving a prior warning about one or more compliance problems.

(B) Repeated failure to comply with laws.

(C) Failure to use age verification equipment purchased as an offset to a previous penalty.

(D) Efforts to conceal a violation.

(E) Intentionally committing a violation.

(F) A violation involving more than one consumer or employee.

(G) A violation involving a juvenile.

(H) A violation resulting in injury or death.

(I) A violation that occurred at a licensed premises that has been granted a security waiver.

(6) A licensee, certificate holder, Commission-certified hemp grower, or Commission-certified hemp handler may not avoid the sanction for a violation or the application of the provision for successive violations by changing the corporate structure for example, by adding or dropping a partner or converting to another form of legal entity when the individuals who own, operate, or control the business are substantially similar.

To view attachments referenced in rule text, click here to view rule.

Statutory/Other Authority: ORS 475C.017

Statutes/Other Implemented: ORS 475C.265, 475C.405, 475C.548, 475C.628 & 475C.109

Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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