§ 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.