TITLE 3. ALCOHOLIC BEVERAGE AND CANNABIS CONTROL

VIRGINIA CANNABIS CONTROL AUTHORITY

Final Regulation

Title of Regulation: 3VAC10-80. Enforcement (adding 3VAC10-80-10, 3VAC10-80-20).

Statutory Authority: §§ 4.1-601, 4.1-604, and 4.1-606 of the Code of Virginia.

Effective Date: January 1, 2024.

Agency Contact: Jake Shuford, Legislative and Regulatory Manager, Virginia Cannabis Control Authority, 333 East Franklin Street, Richmond, VA 23219, telephone (804) 873-9038, or email jake.shuford@cca.virginia.gov.

Background: Chapters 740 and 773 of the 2023 Acts of Assembly transferred regulatory authority for the Medical Cannabis Program from the Board of Pharmacy to the independent agency, the Cannabis Control Authority.

Summary:

Pursuant to Chapters 740 and 773, this action establishes Enforcement (3VAC10-80) for the Medical Cannabis Program, which includes grounds for the Board of Directors of the Cannabis Control Authority to take action against a medical cannabis facility, including activities consistent with prohibited acts for other medical professional boards.

Chapter 80
Enforcement

3VAC10-80-10. Definitions.

In addition to words and terms defined in § 4.1-600 of the Code of Virginia, the following words and terms when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise:

"Board" means the Board of Directors of the Cannabis Control Authority.

"Certification" means a written statement, consistent with requirements of § 4.1-1601 of the Code of Virginia, issued by a practitioner for the use of cannabis products for treatment of or to alleviate the symptoms of any diagnosed condition or disease determined by the practitioner to benefit from such use.

"Medical cannabis facility" means a pharmaceutical processor, cannabis dispensing facility, or cannabis cultivation facility.

"Qualifying patient" means a Virginia resident who has received from a practitioner, as defined in § 4.1-1600 of the Code of Virginia, a written certification for the use of cannabis products for treatment of or to alleviate the symptoms of any diagnosed condition or disease.

"Registration" means an identification card or other document issued by the board that identifies a person as a qualifying patient, parent, legal guardian, or registered agent that has voluntarily registered with the board.

3VAC10-80-20. Grounds for action against a medical cannabis facility.

The board may suspend, revoke, or refuse to grant or renew a permit issued; place such permit on probation; place conditions on such permit; or take other actions permitted by statute or regulation on the following grounds:

1. Any criminal conviction under federal or state statutes or regulations or local ordinances, unless the conviction was based on a federal statute or regulation related to the possession, purchase, or sale of cannabis products that is authorized under state law and regulations;

2. Any civil action under any federal or state statute or regulation or local ordinance (i) relating to the applicant's, licensee's, permit holder's, or registrant's profession or (ii) involving drugs, medical devices, or fraudulent practices, including fraudulent billing practices;

3. Failure to maintain effective controls against diversion, theft, or loss of cannabis, cannabis products, or other controlled substances;

4. Intentionally or through negligence obscuring, damaging, or defacing a permit or registration card;

5. Permitting another person to use the permit of a permit holder, the written certification of a qualifying patient, parent, or legal guardian, the registration of a qualifying patient, parent, legal guardian, or registered agent that has voluntarily registered with the board;

6. Failure to cooperate or give information to the board on any matter arising out of conduct at a medical cannabis facility;

7. Discontinuance of business for more than 60 days, unless the board approves an extension of such period for good cause shown upon a written request from a medical cannabis facility.

a. Good cause includes exigent circumstances that necessitate the closing of the facility; or

b. Good cause shall not include a voluntary closing of the medical cannabis facility;

8. Failure to comply with requirements of Chapter 16 (§ 4.1-1600 et seq.) of Title 4.1 of the Code of Virginia or any regulation of the board relating to medical cannabis facilities; or

9. Engaging in or attempting any fraud or deceit in connection with the operation of a medical cannabis facility, including any application to the board related to the operation of a medical cannabis facility.