15 Miss. Code. R. 22-11.1 - Suspension or Revocation of License, Fines or Other Penalties

11.1.1 The Department may take the following actions against licensees, alone or in combination, in any case in which it finds that a licensee has failed to comply with the requirements established by the Mississippi Medical Cannabis Act and/or the rules, regulations or standards promulgated in furtherance of such act:

A. Impose monetary penalties;

B. Issue an Administrative Hold;

C. Suspend a license;

D. Revoke a license;

E. Accept the voluntary surrender of a license;

F. Confiscate or seize cannabis plants, cannabis and/or cannabis products;

G. Order destruction of cannabis plants, cannabis and/or cannabis products;

H. Recall cannabis and/or cannabis products; or

I. Accept the voluntary surrender of cannabis plants, cannabis and/ cannabis products.

The schedule of disciplinary actions included as APPENDIX B to this Part shall be used when administratively disciplining medical cannabis establishments for violating statutory and/or regulatory requirements. The Department reserves the right to increase penalties based on aggravating circumstances and/or the medical cannabis establishment's history of violations and corrective actions.

11.1.2 Suspension. In addition to the schedule of disciplinary actions included as APPENDIX B to this Part, the Department may suspend the license of a medical cannabis establishment if necessary to protect public health, safety, or welfare. A suspension shall not exceed a period longer than six (6) months. A medical cannabis establishment may continue to possess and cultivate cannabis as otherwise authorized to do so under its license during a suspension, but it may not dispense, transfer or sell cannabis.

11.1.3 The Department may seize, destroy, confiscate or place an administrative hold on any cannabis plants, cannabis and/or cannabis products under, but not limited to, the following circumstances:

A. Failure to log and/or tag in the seed-to-sale system;

B. Alteration of cannabis and/or cannabis products in a manner that fails to comply with this Part;

C. Failure to package and label in accordance with this Part in general and Section 11 specifically;

D. Such items are cultivated, harvested, manufactured or transferred in a manner, or otherwise in a form, not compliant with the rules/regulations in this Part or the Mississippi Medical Cannabis Act Use; or

E. Improper use, handling, storage, transport, transfer or other possession of such items.

11.1.4 Administrative Holds. The Department may order an administrative hold of cannabis plants, cannabis and/or cannabis products to prevent destruction of evidence, diversion or other threats to public safety, while permitting a licensee to retain its inventory pending further investigation, pursuant to the following procedure:

A. If during an investigation or inspection of a licensee, an employee or agent of the Department develops reasonable grounds to believe certain cannabis plants, cannabis or cannabis products constitute evidence of acts in violation of the rules/regulations in this Part, the Mississippi Medical Cannabis Act or constitute a threat to the public health or safety, the Department may issue a notice of administrative hold of any such cannabis plants, cannabis or cannabis products. The notice of administrative hold shall provide a documented description of the cannabis plants, cannabis and/or cannabis products subject to the administrative hold and a concise statement regarding the reasons for issuing the administrative hold.

B. The Department will identify the cannabis plants, cannabis and/or cannabis products subject to the administrative hold in the seed-to-sale system. The licensee shall continue to comply with all inventory tracking requirements of the seed-to-sale system.

C. The licensee shall completely and physically segregate the cannabis plants, cannabis and/or cannabis products subject to the administrative hold in a limited access area of the licensed premises under investigation, where it shall be safeguarded by the licensee.

D. While the administrative hold is in effect, the licensee is prohibited from selling, giving away, transferring, transporting or destroying the cannabis plants, cannabis and/or cannabis products subject to the administrative hold, except as otherwise authorized by this Part.

E. While the administrative hold is in effect, the licensee must safeguard the cannabis plants, cannabis and/or cannabis products subject to the administrative hold, must maintain the licensed premises in reasonable condition according to health, safety and sanitary standards, and must fully comply with all security requirements, including but not limited to all surveillance, lock and alarm requirements in this Part.

F. Nothing herein shall prevent a licensee from voluntarily surrendering cannabis plants, cannabis and/or cannabis products that is subject to an administrative hold, except that the licensee shall follow the procedure authorized by the Department to complete the voluntary surrender.

G. Nothing herein shall prevent a licensee from the continued possession, cultivation or harvesting of the cannabis plants, cannabis and/or cannabis products subject to the administrative hold.

H. At any time after the initiation of the administrative hold, the Department may lift the administrative hold or seek other appropriate relief.

11.1.5 Notice. At the time of denial of an application for licensure or the imposition of any monetary penalty and prior to imposition of non-monetary sanctions, suspension or revocation of a license, written notice of the contemplated action shall be given to the applicant or licensee specifying the reason(s) for the proposed action and shall notify the licensee of the right to a hearing on the matter.

The Department shall provide its initial notice of denial, suspension, revocation, fine or other sanction by personal delivery, mailing by certified mail, signature required, or by electronic mail to the applicant or licensee, at the address on record with the Department.

11.1.6 Request for an Administrative Appeal/Hearing. The Mississippi State Department of Health will provide to a licensee/aggrieved party an opportunity for a prompt and fair appeal process when the licensee/aggrieved party is dissatisfied with an administrative decision imposing fines and/or other penalties/sanctions, denial, suspension, or revocation of a license and wishes to appeal the administrative decision.

A. Upon written request by the licensee/aggrieved party and within twenty (20) days of receipt of the initial notice of administrative action, the licensee/aggrieved party may file a request for an appeal which is handled through the means of an administrative hearing with the Department. Once a licensee/aggrieved party requests an appeal, the State Health Officer shall be notified by the Department and shall appoint a qualified Hearing Officer within thirty (30) days to set a date, time and place for the administrative hearing convenient for all parties.

B. If the licensee/aggrieved party fails to appeal the initial notice within the prescribed time, the decision becomes final and cannot be further appealed.

C. A court reporter shall attend and transcribe the proceeding.

D. Hearings before a Hearing Officer are considered confidential and are not open to the public.

E. An informal review may be granted for any situation, but is not required before seeking an administrative appeal, and if requested, does not toll the time limit to request an appeal/administrative hearing.

F. The parties may continue to attempt to resolve issues informally once the formal appeals process has begun.

G. The licensee/aggrieved party shall be entitled to legal representation at the hearing at his/her own expense but may also choose to represent himself/herself. The burden shall be on the licensee/aggrieved party at the hearing to prove that the Department's decision was:

(a) arbitrary or capricious;

(b) unsupported by evidence;

(c) beyond the power of the Department to make; or

(d) violated a statutory or constitutional right of the aggrieved party.

H. A continuance for an administrative hearing may only be requested by a showing of good cause and may be granted at the discretion of the Hearing Officer. A request for a continuance shall be made within ten (10) days of the date for which it is needed unless it is due to an emergency.

1. Within thirty (30) calendar days of the hearing, or such period as determined during the hearing, written findings of fact together with a recommendation from the Hearing Officer shall be forwarded to the State Health Officer for review. The State Health Officer may adopt, modify, or reject the Hearing Officer's recommendation or decide what, if any, action is to be taken on the matter. The decision by the State Health Officer will be made within fourteen (14) calendar days of receipt of the recommendation from the Hearing Officer and will be considered the Final Decision or Final Order by the Department.

2. Written notice of the decision shall be provided to the licensee/aggrieved party at the address on record with the Department. Licensee/aggrieved party has a duty to update his/her address as necessary to receive correspondence in a timely manner.

3. Appeal of the Department's Final Order shall be accomplished as provided by the appropriate statute.

4. If the licensee/aggrieved party fails to appeal the Final Order within the prescribed time, the decision becomes final and cannot be further appealed.

5. For the Rules and Procedures for State Level Administrative Hearings refer to APPENDIX C of this Part.

Notes

15 Miss. Code. R. 22-11.1

Adopted 1/13/2024