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