Section 41-137-47 - Fines, suspensions and revocations(1) The licensing agency is authorized to investigate, either on the basis of complaints filed with it or on its own initiative through compliance visits, reviews or audits, instances of suspected violations of any nature, including, but not limited to: (a) Performing the duties and requirements set forth for licensees within the relevant statute and regulations;(b) The providing of false information on an application or renewal for a license, incident to a hearing, or otherwise;(c) The conviction of a licensee of a felony;(d) The misappropriation of funds; and(e) The inversion or diversion of medical cannabis or medical cannabis products, or of any other matter reflecting unfavorably upon the holder of a license under the act.(2) On the basis of information developed during such an investigation, the licensing agency may exercise any number of compliance actions including: (a) To revoke, suspend or refuse to renew any license issued by the licensing agency;(b) Deny an application for a license; or(c) Reprimand, fine and/or take any other actions in relation to a license, as the licensing agency may deem proper under the circumstances.(3) The licensing agency may deny the application of any applicant who fails to meet the qualifications for obtaining such license under this chapter or any rules and regulations under this chapter.(4) Whenever the results of such an investigation are filed, the licensee may request an administrative hearing on the matter. If a licensee or applicant wishes to appeal the licensing agency's decision, the licensee or applicant shall file its administrative appeal within twenty (20) days of receipt of the initial notice. If such a hearing is requested, the licensing agency shall set a day for a hearing and shall notify the licensee that on the day fixed for hearing he or she may appear so that an administrative hearing may take place. The licensing agency shall then conduct a hearing on the record pursuant to the licensing agency's rules and regulations governing such hearings, at which time the burden shall be on the licensee or applicant to prove that the agency's decision was:
(a) Unsupported by substantial evidence;(b) Arbitrary or capricious;(c) Beyond the power of the administrative agency to make; or(d) Violated some statutory or constitutional right of the aggrieved party. If the licensee or applicant fails to appeal the initial notice within the prescribed time, the decision becomes final and cannot be further appealed.
(5) In cases where violations of this chapter have been substantiated, the licensing agency may assess a monetary penalty or recoupment of costs for those reasonable costs that are expended by the licensing agency in the investigation and conduct of a proceeding for the compliance issue that is the subject matter of the hearing, including, but not limited to, the costs of process service, court reporters, expert witnesses and investigations. The licensing agency shall determine the amount of investigative fees and costs owed by a licensee based on an itemized accounting after the investigation has been officially completed and a final determination or action has been determined. Upon final determination or action, the licensing agency shall give to the licensee an itemized accounting of the investigative fees and costs incurred. The licensing agency may recommend denial of, or refusal to take final action to approve the renewal of a licensee unless all investigative fees and costs have been paid in full by the licensee.(6) The licensing agency shall provide its initial notice of suspension, revocation, fine or other sanction by personal delivery or mailing by certified mail, signature required, to the medical cannabis establishment at the address on the registration certificate. A suspension shall not be for a longer period than six (6) months. The licensing agency shall provide its initial notice of denial by personal delivery, mailing by certified mail, signature required, or by electronic mail to the applicant at the physical or electronic address listed in its application.(7) 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.(8) The MDOH shall immediately revoke the registry identification card of any cardholder who sells or otherwise transfers medical cannabis to a person or other entity, and the cardholder shall be disqualified from further participation in the medical cannabis program under this chapter.(9) Except as otherwise provided in subsection ( 8) of this section, the MDOH may revoke the registry identification card of any cardholder who knowingly commits a violation of this chapter. (10) The hearing decision of the agency on a denial, revocation, suspension or fine is a final decision of the applicable agency subject to judicial review in accordance with Section 41-137-59.(11) No license issued by the MDOH or MDOR shall be transferred by the license holder to any other person or entity except with the written consent of the applicable licensing agency.(12) Any ongoing investigation by a licensing agency under this section shall be considered confidential and exempt from disclosure under the Mississippi Public Records Act of 1983, Sections 25-61-1 through 25-61-17.Amended by Laws, 2024, ch. 495, SB 2857,§ 2, eff. 7/1/2024.Amended by Laws, 2023, ch. 436, HB 1158,§ 6, eff. 3/27/2023.Added by Laws, 2022, ch. 303, SB 2095,§ 24, eff. 2/2/2022.